| Comment Number: | 522418-05406 |
| Received: | 6/30/2006 11:55:17 PM |
| Organization: | Quixtar |
| Commenter: | Bob Herndon |
| State: | VA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
The FTC's efforts regarding business opportunities is commendable. Rules and regulations that will create an equal opportunity for all businesses and business opportunities to succeed would, I would think, be the ultimate objective of such rules and regulations. To that end, I would encourage the adoption of such rules and regulations that achieve these objectives without being unduly burdensome on the business operations or conduct of any particular business. A reasonable waiting period is in order and would enable those considering business opportunities to re-examine their decisions and the thought process(es) involved in such decisions. Seven (7) days appears to be excessive. However, something in the 3-5 day period would be beneficial to all parties concerned. Reasonable and responsible businesses and business opportunities will not be unduly impacted by providing those considering their business opportunity the ability to review their decision once the emotionalism of the moment has passed. If the business opportunity cannot survive the scrutiny, or passage, of such a nominal waiting period as 3-5 days, it probably doesn't deserve the time, consideration or financial investment, regardless of amount, of those considering it as part of their future. Any competent and responsible businesss person or business entity should be more than willing to provide references of other business owners participating in their business who can provide answers to important questions that need to be addressed at that time. While I think 10 is an excessive number of references, I would agree that at least 3-5 references is neither unreasonable or unduly burdensome on anyone. Disclosure is always better than secrecy. The latter breeds distrust and fosters ill will if things don't materialize as initially presented. Disclosure demonstrates openness and honesty and ensures that everyone entering a particular business is fully informed and has all of the questions answered to their satisfaction. While I know many involved in business opportunities such as Quixtar will not agree with the following statement, I do not see any detrimental affects of disclosing any pending legal actions or legal claims that may have been made against the company and/or organization in the last 5 years and, more importantly, the results of such legal actions or claims. Once again, disclosure overcomes secrecy. If a court or other independent party has found the legal actions or claims unwarranted, disclosure of such actions should not have a detrimental impact on the business or its independent owners or agents. Any individual business owner's personal income information should be considered private, confidential and to some extent proprietary information. Should they have no problem disclosing such information, that would be fine. However, no business owner should be required to disclose such information. I do most certainly agree that any income claim presented to a prospect should require substantiation. I hate to continue to beat the same drum but once again disclosure trumps secrecy any day of the week. Let me add some other thoughts. Organizations related to a business opportunity should be required to provide disclosures regarding their business operations as well. As an example, a number of years ago it was revealed during a business opportunity meeting of Quixtar that a related organization, operated by one of the leading business owners, provided a revenue sharing opportunity for selected members of the organization for the distribution of training materials, i.e. books, tapes, etc. This and other information related to such organizations should most assuredly be disclosed to prospects up front and certainly before they agree to subscribe or participate in any program(s) to purchase such materials to facilitate the operation of their business or contribute to their personal development. I'm out of space. Best wishes.