|Received:||7/5/2006 9:27:17 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I became an Independent Business Owner (IBO) through the Quixtar opportunity in October, 2005. I was attracted to this business because it offered me the opportunity to develop a supplemental income stream that was tied to my efforts, I did not have to jeopordize my current employment to develop this business, and I could develop a business that I could continue into retirement. I am writing to register my opinion that the proposed FTC regulations concerning Business Opportunities are unnecessary for the Quixtar corporation and will be unduely burdensome and restrictive for IBOs such as myself. I am dismayed that the government would consider it necessary to impose these constraints on legimate home-based businesses such as Quixtar simply because other companies (most often referred to as vending machine businesses in the proposed ruling) are fraudulent. The proposed 7-day waiting period is unnecessary since new IBO prospects have a full 6 months to request a refund of their business registration fees and any products they purchase. Moreover, requiring IBOs to furnish the names of 10 nearby business owners so that the prospect can do additional research on the corporation is untenable. I did considerable due diligence research about the corporation through materials and websites provided by the individuals who showed me the opportunity and links on the Quixtar.com website itself - including links to the Federal Trade Commission and Better Business Bureau. In fact, other than unsubstantiated claims on blog-type websites, I could find no other legitimate information about Quixtar through traditional sources. So I feel that any IBO prospect can make an informed decision about the business through the current information provided in the information given to them at the initial meeting and from the Quixtar website itself. Furthermore, the IBO registration fee is minimal, less than $200 and that includes training materials, a virtual office and up to 4 personalized websites. Moreover, there is a 6-month refund policy on the IBO registration - and on all products. I myself have returned products that I did not like, and have been promptly refunded and the corporation has paid for return shipping. I have had one new IBO who requested a refund of their registration fee. With a quick call to the corporation (toll free number), the individual was able to quickly (and pleasantly) learn how to secure a refund, faxed a very simple letter to the provided number, and received a refund within 1 week accompanied by a very nice letter from the corporation. Requiring me to furnish a list of 10 nearby IBOs to all my prospects is tatamount to giving other IBOs in the area qualified leads on individuals who are interested in the business opportunity. This is definitely not in keeping with the spirit of free enterprise! I am also very opposed to providing a list of pending, current, and past litigation against the corporation to any prospects. No other businesses are required to do this - I did not receive such as list when I purchased my computer (which cost considerably more than the registration fee for Quixtar and for which I only had a 1-week return policy). It is an unfortunate reality that all businesses - and most especially those that are large and profitable - are confronted with lawsuits. Requiring IBOs to assemble this information and disseminate it to potential prospects is burdensome, makes us distinct from other business opportunities, and creates the false impression that we are an unethical business. In fact, I think this requirement would essentially have the impact of driving most individuals away from the business - almost all of my prospects to date (approximately 50 individuals/couples) have not researched other home-based businesses. I urge you to reconsider the provisions of this ruling in light of the consider impediments it would create to legitimate and ethical businesses such as mine.