|Received:||7/14/2006 11:03:42 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:To whom it may concern. I was recently made aware of possible changes in the rules concerning Direct Selling companies. Of which I am apart of Quixtar as a registered IBO (Independent Business Owner). I agree that some monitoring of these types of companies should exist as their are several operating without any moral or credible product or company. Another words there are scams out there, which unfortunately give the rest of the direct selling companies out there, a bad name or guilt by association. With that said I do see have some issues with some of the proposed changes. Requiring a 7-day window from the time of exposure to an opportunity to registration would only affect those companies that run a moral and ethical business. Any scam or unethical company would completely ignore this rule and continue business as usual and never inform any prospect of such rules. Also that delay would possible hinder business and free enterprise, as no other company is required to wait a mandatory time frame before starting a business. Also with Quixtar there is a 6-month unconditional money back guarantee, so the 7-day wait, seems to honestly be a waste of time. Requiring a list of 10 references. I am not sure what this will accomplish, to be honest. As stated above, as this is not publicly known information unethical or scams wouldn’t let anyone know about this and completely ignore this rule. Also I am not sure about other Direct Selling Organizations, but Quixtar grows very quickly when you start your business. To give every person that is exposed 10 references not only are you slowing down their business and access to additional income but also you are hindering the people on the list of 10 references, as you would take away from their ability to expand their business. Also as this business is a sponsorship business, where every other IBO in Quixtar is doing the same thing, your work in meeting or contact that new prospect, now opens them up to others that may not have morals or ethical business practices and try to “steal” business from the person who is giving the references. Requiring a list of all lawsuits, arbitration or other legal actions within a 10 year time frame, seems a bit tedious and honestly, not fair, to ethical businesses such as Quixtar. I agree some oversight should be in place. I mean honestly, with all the unethical business practices and scams, which just look for recruits to make money from some start up fees, do you think they will honor this rule as well. Also you open up the field for false accusations and lawsuits, to discredit a company if someone got mad that they didn’t create the income they desired, by not working a business to create that income. All the frivolous lawsuits that are filed daily would overwhelm not only a business owner but also a court system that is already under pressure to rule on these type of lawsuits. Requiring disclosure on income claims in a presentation is already in place with Quixtar, as there is documentation available for persons that request it, that validate and explain the income potential step by step. Also Quixtar and all documentation concerning the business opportunity has a standard income disclosure of what the average income is within Quixtar. To require each person that present the opportunity to disclose any personal income attained through the Quixtar opportunity seems a bit over the top. Why would personal incomes come up when an opportunity is different for each person based on their on work habits. Also the average income disclosure would satisfy any exaggeration or misrepresentation of incomes. Thank you for your time.