| Comment Number: | 522418-07779 |
| Received: | 7/11/2006 5:46:10 PM |
| Organization: | Quixtar Leadership Team Development |
| Commenter: | Emily Ptacek |
| State: | KS |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I feel the new proposed legislation for Direct Selling companies will complicate and hinder business opportunity millions of Americans are involved in. I have been involved with the business opportunity with Quixtar.com for 2 years. I am 20 years old and am truely excited about my business.There are several problems with the new proposal that will hinder my business greatly. Eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied.If I would have gotten started sooner than the 7 days upon seeing the plan I would have been much further along. Upon seeing the business, I thought about it to long and allowed people with no experience in the business speak negative about it.That hindered me from fast growth.If I would have gotten started right away i would have been much futher along than where I am now. This business has fit into my lifestyle perfectly and will eventually allow me to retire early. When I registered i was given Plenty of information infact almost too much information to all at once that could hinder a new person from getting started just for the hassel of reading it all. There is a 6 month money back gaurentee that sets new prospects at ease upon registering.If they find it not for them, they can exit easily. Waiting 7 days upon registering will hinder the new IBO from growing fast and creating a profit.I have seen and learned from experience that registering a prospect right away is in the best interest of the prospect.If i would have gotten registered right away I would have been way more excited, and more apt to start others and would have been much futher along than where I am now. The list of 10 references of other IBOs infringes on the IBO's right to privacy. Also that can penalize the sponsor. Other IBOs might be happy to register the prospect themselves. People on the Leadership Team Developement team are people of accountability and Integrity but there are some people who may not be as accountable as others. If I were going to hire someone I wouldn't give them a list and contact information of other companies that might compete and want to hire my prospect.Or even a College recruit prospecting an athlete; I wouldn't give other colleges the chance to compete against me for my prospective athlete.Eliminate the requirement to provide 10 references. Eliminate the requirement to disclose past litigation. I would have to give every prospect a list of all lawsuits, arbitrations, and other legal claims for the past 10 years involving Quixtar and its IBOs where the plaintiff alleged fraud, misrepresentation, or unfair trade practices– regardless of whether or not the accusation was true. Among other problems, this requirement would open up Quixtar and other legitimate companies to false accusations.Meanwhile, dishonest companies would simply ignore the rule. Any franchise or company in the public does not require this information out to the general public in their establishments, why for us? Elimanate disclosure for every income claim.This would include any examples I might use during an opportunity presentation to illustrate how the Plan works. If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." Which we use and publish on the website, and it is $115.I would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim.IBOs should possess substantiation for any claim but should not be required to disclose it except when required by the FTC and similar state agencies in an agency investigation would infringe on the right to privacy for that IBO. I believe that providing every prospect with important information about prior experiences is good for Quixtar and the entire direct selling industry. However, there are less burdensome ways to accomplish that goal In God We Trust, Emily Ptacek