|Received:||7/16/2006 8:52:02 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:My comments regarding the proposed FTC rules: 1. 7 Day Waiting period: I feel that the 7 day waiting period is totally unnecessary. In my 22 years as an IBO with both Amway and Quixtar I know that there is a critical element of excitement that fades in 24 to 48 hours when presented with any opportunity. I believe all states have a 3 day right of recision law that covers any purchase or contract over $25.00. Having any additional waiting period would be redundant and cause irreparable damage to the growth and continued operation of my business and those with whom I choose to expand with. I had an IBO who decided that the opportunity was not for him after 45 days, and not only did Quixtar give him his money back, but they let him keep the products they had sent him as well! The 7 day waiting period would be harmful and unnecessary. 2. 10 Reference requirement: This proposed requirement is pretty far fetched and not practical at all. Not only is it an invasion of my privacy as an IBO to have my name and contact info handed out to anybody, it does nothing to insure the accuracy or the quality of info provided to the new prospect not to mention that some of these so called references would be very willing to sponsor the new prospect themselves! This would further hinder my ability to build my business. Eliminate this requirement. 3. List of lawsuits: Eliminate this requirement! Not only will prospects not bother to take the time to wade thru hundreds of potential "complaints", but the only ones worth while would be the ones that are legitimate and have been proven. That process could take years! Every IBO has the potential of operating their business with integrity or not. This proposal does not provide any protection from fraudulent practices or people. Eliminate this requirement! 4. Different disclosures for every income claim: Eliminate this. Income claims including average income are totally worthless pieces of information. The only income that is important is the one that you achieve directly from the result of the performance of the marketing plan. Retail profits vary based on actual sale price, expenses, etc., but the performance bonuses derived from the marketing plan are black and white. When you do this much volume, you get this much money, period. Depending on the structure of your organization those numbers may change but all very predictably. With Quixtar we already have an FTC approved SA4400 documentation that explains this. Anything more is unnecessary. 5. Personal financial documentation: Eliminate this requirement. It is no one's business but mine, my accountant and the IRS what personal income I make with my business. The biggest concern of the new prospect is how much they can make. Again I refer back to the previous response regarding documentation. If you follow the marketing plan it is easy to predict the type of income you can expect in every situation. IBOs who insist on making claims of their own income should be willing to back it up with documentation but the prospect is not protected from false claims in that case any more than if no claims were made. An FTC required documentation would not provide any additional protection unless the FTC were to substantiate each individual's claim. and this is not achievable. Eliminate this requirement. I believe that as an independent business owner using Quixtar as my supplier these proposed changes offer no protection at all for me or for new prospects. I believe that instead of punishing the industry with restrictive regulations, the FTC's time and our tax dollars are better served going after the companies and businesses that are truly operating with deceptive and illegal practices and enforcing the volumes of existing laws that are already available to protect the people currently operating and seeking out new business opportunities. Thank you.