| Comment Number: | 522418-09127 |
| Received: | 7/13/2006 11:33:37 PM |
| Organization: | Quixtar |
| Commenter: | Jody Victor |
| State: | OH |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
July 13th, 2006 The U S Federal Trade Commission My wife Kathy and I have been building a business opportunity business since 1970. We have enjoyed a full time career for over 35 years developing our Amway business and now with Quixtar, Inc. We have raised our three children throughout our years in the business. The “intangibles” brought about from the business have been a breath of fresh air. We have seen our children graduate from college and now they too are building a business with MMP powered by Quixtar. We are all business associates and best friends. Over the last four decades I have personally seen many business opportunities come and go. In reviewing your current rule proposals I applaud the efforts but at the same time I seen some challenges with the application of what is proposed. Challenge #1. Making Prospects wait 7 days after receiving disclosures before they could register seems “over the top.” Especially when we have offered for years a satisfaction guarantee and there is no money made on the act of recruitment of another. Please consider no waiting period when someone can easily get all of their money back. Challenge #2. Making it a requirement to give every prospect a list of “references” to include names, addresses, and phone numbers of 10 other IBO’s in the area while they wait for 7 days is crazy. We are all competitors how would that work? What if it is a NEW business opportunity without any others to reference? How would a new start up work? This is a burden no one would ever enjoy. It seems unpractical if you were building a true livelihood from the opportunity. How about our privacy? I would not want my name given out and if it was what is to stop me from saying “don’t register with the one who referred you join with me?” This requirement must be eliminated. Challenge #3. Give all prospects a list of all lawsuits, arbitrations, or other legal claims for the past ten years involving Quixtar or its’ IBOs where the plaintiff alleged fraud, misrepresentation, or unfair trade practices – regardless of whether or not the accusation was true? In my 36 years I have never had a complaint filed against me from another about the operation of my Amway/Quixtar business. How is that for a disclosure? This challenge would make us all a target for false allegations. This would increase legal expenses and drive prices of our products up making us less competitive and for what purpose? The dishonest companies who promise “ground floor opportunities” would simply ignore this rule. This requirement should be eliminated. Challenge #4. Requiring us to make a different disclosure for every income claim? When we present Quixtar’s IBO Compensation Plan this would be a huge burden. How would the prospect even begin to understand compliance here? No one can remember the entire math as it is presented now. We provide our prospects with a simple, easily understood disclosure of income earned by “active IBO’s” and it works. Challenge #5. Requiring me to provide prospects with personal financial documents to back up or substantiate any income claim? I agree to possess same but to require me to disclose it is totally unfair. I have a right to privacy and how do I know it is not some competitor masking as a prospect to learn about by finances? How about protection for me? If asked by a governmental agency I would disclose whatever they asked for but to a prospect who I hardly know is totally unfair and a burden. A brand new IBO would not have a track record and would never get off the ground. Please drop this requirement. All in all I hope and pray that you will encourage more people to join a business opportunity like Quixtar and not burden or penalize honest IBO’s and cripple their sponsoring efforts. This business has made me a better person, better husband, Dad, Grandfather, and member of my community. Thanks in advance, Jody Victor