| Comment Number: | 522418-05708 |
| Received: | 7/3/2006 8:59:44 AM |
| Organization: | |
| Commenter: | James Kellogg |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I was an IBO in the Quixtar organization and I applaud this proposal. Quixtar is a pyramid scheme that has cost myself and is costing my brother thousands of dollars. There are directions on how to comment to this proposal on the Quixtar website, this shows how "shady" this company is. Attached are some excerpt from the Quixtar website on what thy want to happen and how quixtar "business owners" should respond. The Main Problems and Our Proposed Solutions The proposed rule in its present form would create serious problems for every IBO. We have identified what we believe are the five most important problems and are proposing a solution for each: 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. There is also a page called, "what your comments should include" I'll post as much as I can below, but I will bet cutoff by the character limit. Email me if you want me to send more of this information. Points to Make Here are some points and ideas you may wish to make – using your own words – in your comments. While you won't use all of them (and you don't have to use any), these will probably give you some ideas. (1) Begin With Your Personal Experience Start your comment with a short description of your Quixtar experience: How long have you been an IBO? What goals have you been able to meet so far? What is your next goal as an IBO? How does the Quixtar business fit into your overall lifestyle? Are there benefits other than income? If so, what are they? When you were registered, did you receive enough information to make an informed decision about whether to register? When you sponsor others, do you provide them with the same kind of information? Do your prospects understand that the Quixtar business opportunity is not a "get rich quick" plan, that hard work is required, and that there are no guarantees of success? If so, how do they learn this information? How much money do your prospects typically spend to register (character limit)