| Comment Number: | 522418-07664 |
| Received: | 7/11/2006 1:44:34 PM |
| Organization: | TEAM powered by Quixtar |
| Commenter: | Stephen Visser |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am a Quixtar IBO affiliated with TEAM. I am very concerned about the proposed FTC Rule change in regards to the proposed business opportunity rule. Specific concerns are as follows. Requirements to disclose litigation places a massive burden on the small guy trying to make an extra 2-3 thousand dollars a month. Being required to report litigation in which I personally had no knowledge, no involvement nor any responsability and/or control over is absurd. How could I possibly properly defend something that I have no real knowledge nor understanding of the situation. A new IBO attempting to defend something he knows very little about may lead to even more inaccurate and misleading claims. Furthermore, as our business grows and continues to gain market share, this rule would actually encourage our competitors to file a flurry of lawsuits knowing full well that we must disclose all litigation and allegations. This will absolutely have a negative affect on our growth of our business and gives a competitive advantage to our competitors. I certainly understand the governments desire to protect the consumer and control those companies that are less than honorable and who prey on unsuspecting people. On the other hand, forcing reputable companies into cumbersome and restrictive disclosure requirements will never increase the character of the unethical companies. Honorable companies will abide by the regulations, TO THEIR OWN DETRIMENT! However, the very unethical companies that the government is trying to control will not be affected. These same companies don't abide by the rules now. so making more rules makes even less sense. As far as the references requirement, I know of no other industry that is required to submit references to potential customers/clients/business partners. My wife is a doctor and is not required to supply references. I am a small business owner specializing in granite and tile and I am not required to supply references. I do only upon request. With the Quixtar opportunity, we encourage new prospects to attend an open meeting and meet the people they will be working with. Furthermore we strongly encourage new prospects to attend a seminar offering a complete money back guarantee. This allows the prospect to conduct due diligence not only about the idea but also about the people involved. I respectfully submit the following suggestions: 1. Eliminate any language that would require a 7 day waiting list. 2. Eliminate any language that would require personal income verification 3. Eliminate any language requiring a litigation list 4. Eliminate any language requiring a references list. 5. If financial disclosure is necessary, make it simple such as a specific income outline developed by the company for specific levels in the business. ie: average gross monthly income for active IBO's" is x amount of dollars 6. Require a liberal refund policy. I have always applauded the FTC's position of protectinf unsuspecting consumers from fraud. Our business model has stood for years, not simply as legal, moral and ethical, but more so as the industry standard by which all other models are judged. Please act cautiously in enacting any rules that would injure my business because of the unethical conduct of someone else. Additional consideration is that a prospect has a certain amount of reponsability to conduct due dilligence when investing his/her own money. When I invest in the stock market, it is up to me to research my broker and his effectiveness, It is not his responsability to create a reference list, litigation list or success rate. I am confident you will be able to come up with a simple compromise that will be fair to all concerned. Thank you for your time. I will gladly discuss this with panel members more in depth if they so choose, I can be reached @ . My email address is Sincerely, Steve and Cheri' Visser Groves, Texas