| Comment Number: | 522418-05387 |
| Received: | 6/30/2006 9:59:37 PM |
| Organization: | Quixtar affiliated Business |
| Commenter: | David Theado |
| State: | OH |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To whom it may concern: My wife and I are independant business owners affiliated with the Quixtar opportunity. Together we have been in business for nearly 3 years, personally I have been involved for 10 years. This business is a wonderful opportunity for us, and for anyone. It has become part of our lifestyle, and we are blessed to be part of it, and have our family grow up it in. While my wife & I applaud your efforts to improve our industry, there are some things in the proposal that will affect & potentially hurt our business. The Quixtar corporation has already outlined the 5 biggest concerns, and we agree wih them. I have duplicated them below to reiterate & I have added additional comments below: Problem 1: Prospects would have to wait 7 days after receiving disclosures before they could register. -Solution: Eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. Problem 2: You would be required to give every prospect a list of "references" – the names, addresses, and phone numbers of 10 other IBOs in the area – seven days before the prospect registers. This requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also penalize the sponsor, who would be required to give his prospect contact information for 10 other IBOs, any of whom might be happy to register the prospect themselves. -Solution: Eliminate the requirement to provide 10 references. Problem 3: You would have to give every prospect a list of all lawsuits, arbitrations, or other legal claims for the past 10 years involving Quixtar or its IBOs where the plaintiff alleged fraud, misrepresentation, or unfair trade practices – regardless of whether or not the accusation was true. Among other problems, this requirement would open up Quixtar and other legitimate companies to false accusations. Meanwhile, dishonest companies would simply ignore the rule. -Solution: Eliminate the requirement to disclose past litigation. Problem 4: You would have to make a different disclosure for every income claim.This would include any examples you might use during an opportunity presentation to illustrate how the Plan works. -Solution: If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." Problem 5: You would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. -Solution: IBOs should possess substantiation for any claim but should not be required to disclose it except when required by the FTC and similar state agencies in an agency investigation. Although I understand the purpose of these rules, they prove counter productive for our business. Our busines is in fact, our FAMILY business, and it & our Team thrives on integrity. We are always open, honest & upfront about our business. We agree whole heartedly with Quixtars assements, but would like to add that these proposals would quickly diminish momentum & excitement in our business. Those 2 things are vital, as our primary goal is to always help the newest Team member begin to grow & to be succesful. In closing, please continue to explore ways to make our industry safer, and better. However do not penalize those that are truly remarkable, special and honest. Thank you in advance for your efforts. David & Ana Theado Independant Business Owners, Affiliated with MarkerMan productions- Powered By Quixtar