|Received:||7/5/2006 2:42:49 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I am writing in opposition to the proposed “Business Opportunity Rule” advanced by the Federal Trade Commission. I have been an independent business owner affiliated with the Quixtar business for more than three years. I am also a lawyer who has been in practice for 19 years. Before registering as an IBO with Quixtar, I read fully the disclosures provided to me by Quixtar and my sponsor. I am completely satisfied with the disclosures that were provided to me and that I have been instructed to provide to those registering under me. My cost of registering and starting my business was approximately $42. In addition, this amount was fully refundable to me if I was not satisfied. I have been very careful to inform those I have registered that their registration fees are fully refundable if they are not satisfied. I am was provided with disclosures about the average income of IBO’s – disclosures that I have since provided to all those registered under me. I do not agree with the proposed seven day waiting period for new registrants. This would be unduly restrictive to our business. Because registrants know their payments are fully refundable, there is no need for a 7-day waiting period. I personally would rather have a right of refund rather than a waiting period. It is more effective to have a period of involvement to know if the opportunity is appropriate for you and a right to withdraw if it is not. As I registered in the business, I had an opportunity to meet other IBOs and learn from them of their experience. It would not have been helpful to have a mandatory list of references. I also do not believe a mandatory disclosure of litigation would be effective. As an attorney, I know too well how little it can take to file a lawsuit even if it bears no factual substantiation. The average consumer will be ill-prepared to sort through the claims of any pending case to determine the merits or relevance to their own experience. In summary, the business opportunity we offer people for a business associated with Quixtar is not described as a get-rich-quick scheme or an opportunity to make any significant income without putting in work. We offer a business opportunity with low-entry cost, flexible time requirements and a potential upside. I believe the FTC proposal penalizes responsible business opportunities such as ours without offer substantial benefits to consumers.