|Received:||7/13/2006 7:26:51 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:These are the main concerns: Concern 1. Prospects wait seven days after receiving disclosures before they can register. Solution: Elimate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. Concern 2. We would be required to give every prospect a list of "references" - names, addresses, and phone numbers of 10 other IBOs in the area - seven days before the prospect registers. This requirement would infringe on the privacy of every IBO whose name, address and phone number was provided to prospects. It would also penalize the sponsor, who would be required to give his prospect contact information for 10 other IBOs, any of whom might be happy to register the prospect themselves. Solution: Elimate the requirement to provide 10 references. Concern 3. To give every prospect a list of all lawsuits, arbitrations, and other leagle clains for the past 10 years involving Quixtar ans its IBOs where the plaintiff allefed fraud, misrepesentation, or unfair trade practices - regardless of weather or not the accusation was true. among other problems, this requirement would open up Quixtar and other legitimate companies to fals accusations. Meanwhile, dishonest companies would simply ignore the rule. Solution: Elimate the requirement to disclose past litigation. Concern 4: We would have to make a different disclosure for every income claim. This would include any examples we might use during an opportunity presentation to illistrate how the Plan works. Solution: If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for "active" IBOs. Concern 5: We would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. Solution: IBOs should possess subatantiation 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.