Comment Number: 522418-07192
Received: 7/9/2006 9:30:29 PM
Organization: OK Enterprises
Commenter: Ronald Shandorf
State: PA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

It is with utmost respect for the intent of the proposal that I submit these comments and suggestions. 1. Proposed 7 day waiting period: a. There are numerous occasions for us to present our business opportunity to prospects who do not reside in our local area. Indeed, using technology that exists, we present our plan via an internet method and audio conference call simultaneously. b. We hope that enthusiastic prospects will wish to register at the close of the presentation and then immediately begin to build their business by working with us to share contact lists. We contact those additional prospects without delay. The proposed 7 day waiting period would seriously delay the start of this second-tier contact strategy and in so doing, lose momentum. We would not be able to assist the prospect with starting and strategizing their business plan until registration actually occurred. c. In the instance where the prospect is not remote, this delay would incur significant additional expense to the sponsor by necessitating another trip. d. Our particular opportunity – to start a business associated with Quixtar already allows a new registrant to obtain a refund. However, we do not fully / easily disclose same during our presentation and I’m sure that other business opportunities do not offer such an option,  Suggestion: Instead of a waiting period, I suggest that it include a 7 day rescission period. This would allow us to continue on the roll-out plan without restrictions but still allow the prospect to ‘change their mind’ and opt out easily. 2. Proposal: List of references: a. This requirement would stifle the development of a new prospect’s business in that the new prospect would not be able to ‘stand on their own’ until they had met and/or sponsored at least 10 business owners in their locale. b. As stated above, our opportunity allows the prospect to build their business anywhere in the country (as well as international) and would impose a huge burden to identify other business owners in each locale that a prospect resides in. c. Further, publishing a list of business owners opens the door to the prospect making direct contact with ‘competing’ organizations and would destroy confidentiality as well as the privacy of current business owners. 3. Proposal: 10 year litigation a. The intent to advise new prospects of recent litigation in which there was a finding against our business is admirable. However, the proposal to also include pending litigation would negatively impact business development efforts based on hearsay and potentially false accusations. b. The 10 year timeframe is unduly prejudicial to any business’s efforts to recognize past wrong-doings and react and correct previous adverse litigation findings. 4. Proposal: Disclosure of income claims a. Disclosure of average incomes for each level of business attained is a viable option. Specificity to any individual would have privacy implications that would not be acceptable to many business owners. 5. Proposal: Personal financial docs re income claims a. We believe that providing prospects with valid data regarding the business opportunity and the financial rewards is necessary. b. Since our business growth is dependent on new business owners being able to prospect individuals on a consistent basis and thereby build an organization which purchases product, any requirement to disclose actual remuneration in the early stages of developing their organization would stifle new registrations in that there is very little income in the initial stages. c. A basic tenant of all employer-employee relationships in this country is the confidentiality of personal salary and income information.  We suggest that the proposal needs to encompass this confidentiality concern and that perhaps a valid proposal would be to require disclosures of ‘average incomes’ for the past 12 month reporting period for each declared milestone / level identified in the presentation