| Comment Number: | 522418-06447 |
| Received: | 7/6/2006 11:39:01 AM |
| Organization: | |
| Commenter: | Koppin |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I have been an Independent Business Owner for several years now. I am not at the income level I would like to be, but as any smart business owner knows, that situation is largely under my control. In reading information about the FTC concerns and the proposal, I can understand where a lot of this comes from. There are many fraudulent business people out there that will try any means to make a quick buck off of some unsuspecting person. And, if they can’t do it one way today, they will do it another way tomorrow. In watching some of these companies, it seems to me that the cream always rises to the top and in a couple years the other ones go away. Unfortunately, there are some people who get hurt along the way, but their motives probably weren’t pure either. They, also, were looking for a way to make a quick buck. Instead of making across the board regulations as your proposal is considering, I am suggesting that you look at the track records of successful companies and follow their model, also taking in to account their length of time in business. Quixtar is one such company. One proposal you have is asking prospects to wait 7 days after receiving materials before they can register. Follow the Quixtar model of the IBO rule of giving all prospects the same material and a money back guarantee. If you find companies not doing that, then investigate them. I also noticed you are proposing a list of references being given to new prospects. I really do not like that proposal. Some business people may not be as selective in the people they choose to work with as I am. I do not want their prospects calling me. As far as a list of lawsuits filed against a particular company being given to the prospect… what is the point of that? Everyone knows there are frivolous lawsuits filed everyday. How are they going to know what is legitimate and what is not? Most people will not take the time to thoroughly investigate a claim. And as far as providing someone with my personal financial information relating to my business, I do not want them to think that their personal work ethic is related to mine. If they are willing to put in more time and effort than me, they should make more money than me. I do not want to limit them. Please consider this proposal carefully. Look closely at successful businesses. Use them for models. Look at mistakes that were almost made in the past. Franchising was one such example. Franchising was almost made illegal and yet it is now one of the most successful business practices. If this proposal becomes law, is it really going to help anyone? Is it necessary? What will the ripple effects be? Although, I think the motives are good in trying to eliminate some of the companies who do not follow successful business principles or have good intentions, I do not think across the board regulations like this is the way to go.