| Comment Number: | 522418-11670 |
| Received: | 7/17/2006 2:19:47 PM |
| Organization: | Quixtar |
| Commenter: | James Allen |
| State: | NH |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Concerning your proposed Business Opportunity Rule: Even though other companies may act unethically and require the FTC to look into possible rule changes, Quixtar adheres to ethical, honest business practices and requires this of IBOs. I’ve been a Quixtar IBO (Independent Business Owner) since its inception in 1999 and an Amway distributor previously. I am pleased to have this opportunity to associate with a very ethical company in developing a business. IBOs, through Quixtar, have guidelines for sponsoring to provide the prospect with adequate information to make an informed decision. We’re advised to make no misrepresentations and to caution prospects that it’s not a “get rich quick” plan. Some parts of the proposal I see as a hindrance to my business: *Producing referrals – There is a risk my prospect(s) would register with one of the referrals, creating a very unfortunate, and unethical situation. This rule, if added by the FTC, could encourage unethical practices, which I’m sure you don’t want. My prospects do have opportunities to meet other IBOs at meetings and hear them tell about their experiences. *Providing a “Litigation List “ could be deceptive because many of these litigations are without merit and thrown out of court. *7-Day Waiting Period – Although many registrants take this long before sponsoring someone, there are cases where this rule would slow down an IBO’s business considerably if they couldn’t register people for 7 days. Quixtar generally does have a policy of enabling people to get their money back if they’re dissatisfied. *Providing Personal Financial Records – I feel it’s an invasion of my privacy if I’m required to provide anyone with records of my personal finances. Each IBO has a different situation that affects income, so mine might not necessarily be valid for someone else. Also, someone who is just getting into the business has no income track record to share with his/her prospects. We discuss the impact the business has made on our lives and that when we reached each level, the income fell into the range that Quixtar predicted. I hope my thoughts have been of assistance to you. Sincerely, James S. Allen