| Comment Number: | 522418-10421 |
| Received: | 7/16/2006 1:08:56 PM |
| Organization: | Quixtar.com |
| Commenter: | Daniel Hardy |
| State: | OR |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To Whom it concerns: As an Indipendent Business Owner for over 22 years I would like to give you my perspective on your current proposal for US buness opportunities. First, I applaude your efforst to make sure consumers have all the necessary information needed to make an informed decision about participating in a business opportunity. I have been using a disclosure form from the begining of my business (SA4400)...one that I used to me make my decision to become an IBO...which tells potential participants the "average monthly gross income for 'active' IBOs" in the Quixtar business. I believe uniform, industry-wide disclosure requirements would help consumers evaluate opportunities such as Quixtar and shut down bugus business opportunities. My concens of the current proposal are the 'seven days after diclosure" requirement for a prospective IBO to register, A required "reference" list to be given to every prospect, the requirement of hving to give a list of all lawsuits, arbitrations, and other legal claims for the past 10 years, a requirement to to have a different disclosure for every income claim, and the requirement to provide prospects financial documents to back up ("substantiate") any income claim. The seven day rule could hurt prospective IBOs in their growth and income potential. If they had to wait seven days to register and any one that they would register had to wait seven days..this would significantly slow the momentum of the business opporunity. Since IBOs that register with Quixtar can get their money back if not satisfied, why burden them with a seven day waiting period. I feel it would be an undo burden to be required to give every prospect a list of "references" of 10 other IBOs in my area-seven days before the prospect registers. This requirement would infringe on the privacy of every IBO whose information was give to a prospect, and, if nothing else, it would be the turning over, to other business owners, opportunities to benefit from my marketing efforts. As for giving prospects lists of lawsuits, etc. involving Quixtar and its IBOs. I belive that information is eaily available on the intenet to be investigated by a prospect, not to mention what of cases that are filed regardless of whether or not the accusation was true!? As for the requiremnt to make a different disclosure for every income claim. The best solution if disclosures are needed, just require a simple, standard, easily understood disclosure such as the one currently used by Quixtar IBOs. And lastly, it is my oppinion that all IBOs should possess substantiation for ANY income claim made, but should not be required to disclose it except when required by the FTC and similar state agencies in an agency investigation. So...from 22 years of IBO experience...I would recomend the following. Eliminate the waiting period but provide a reasonable cancellation policy. Eliminate the 10 reference requirement. Eliminate the requirement to disclose past litigation. Financial records SHOULD NOT be disclosed to prospects. Create a level playing field by requiring clear, simple and standardized income disclosures that apply to all direct sellers. Sincerely, Dan Hardy