|Received:||7/6/2006 11:05:32 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I am a relatively small Quixtar IBO (Independent Business Owner), and have been very happy with the Quixtar operation. I strongly support the position that the direct selling industry needs appropriate regulation to maintain a fair, level, honest playing field - I have seen several opportunities myself that are highly questionable. I am concerned, however, about some of the provisions in the proposed rule that would unduly hinder our opportunity, which I see as an important piece of our financial future (I'm 64, and social security in unable to provide any financial security). My specific concerns relate to the 7 day waiting period, providing a list of 10 other IBOs in the area 7 days in advance of registration, listing all legal allegations (proven or not!) over the last 10 years, requiring IBOs (e.g. me) to calculate and make different disclosures for every income claim, and requiring that each of my prospects receives substantiation (what constitutes substantiation?) for every income claim. I believe that the level playing field can be created by requiring clear, simple and standardized income disclosures that apply to all direct sellers, e.g. Quixtar's SA4400 as a model. The 7 day waiting period can fairly be replaced by a reasonable cancellation policy (e.g., 30 days), which should be stated boldly in registration literature. Remove the provision that IBOs disclose past litigation (some, most, or all of which may be inaccurate and unsubstantiated). Remove the provision that IBOs provide references to prospects (I always make a point of attempting to connect prospects with successful upline IBOs anyway, but some IBOs don't live in a metropolitan area where that is as realistic for them). Financial records should definitely not be provided to prospects - in the case of Quixtar, it is a privately held company, not public, and requiring the equivalent of public disclosure of finances would not be right. In addition, my own independent business, powered by Quixtar, financial records are really nobody else's business, and should not be used by anybody else as a reason to join ot not. My own success, or lack of it, has no bearing on anyone else's future success. Thank you for your consideration of these comments. Gerald Roehrig, Ph.D.