| Comment Number: | 522418-11963 |
| Received: | 7/17/2006 5:03:57 PM |
| Organization: | |
| Commenter: | Ondine Constable |
| State: | NC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I've been an independent business owner (IBO) associated with the Quixtar corporation for about 7 years. I utilize Quixtar products in my exercise and wellness business, and my husband and I also coach a team of other IBO's who have their own goals and interests. I've not only been pleased with the financial rewards we've earned, but I've also realized that promoting opportunities for individual entrepreneurs is one of the best ways to strengthen the economy. Helping others earn extra income and improving their lives has become a career for us and we would never do anything to compromise the integrity of our business. I have found both the Quixtar company and other IBO's to be completely straight forward about the earning potential, and in fact it is the way we teach new IBO's to do business. In our training program we always tell prospective new business owners that this is a long term business with no guarantees, since individual effort is the variable that determines how much someone can earn. The proposed FTC rules appear unnecessary with regard to our business, providing no benefit to the public, but could have a negative impact on honest business owners: 7-day waiting period: from the time a person first sees our business opportunity it usually takes about a week to provide all the follow up info; However, frequently there are several friends or family members who want to start at the same time in a single line of sponsorship. Requiring them to wait 7 days between each person getting their business registered would cause a loss of income to the new IBO's by potentially losing product sales and the loss of opportunity to qualify for a higher performance bonus during a waiting period. Providing a list of litigation - Legitimate businesses such as ours can address this concern appropriately on our own, but illegitimate businesses will not comply anyway. It would only confuse people and harm legitimate business owners. Providing a list of contacts - we always encourage prospective business owners to meet our associates before starting a business with us. However it would be an intrusion into the privacy of our business associates to give their names and numbers out to other people. Providing a financial statement - The Quixtar company has done an excellent job publicizing the average earnings for various levels in the business. I feel this satisfies the FTC's concern about accurate expectations for earnings. We always tell people this is not a get rich quick scheme, and we show people what they need to do to qualify for the bonuses they want to earn. However, it is an invasion of privacy if we have to show people our financial records. I appreciate what the FTC is trying to do to protect the public. However, rather than hinder the IBO's it would be better to educate the public about the differences between legitimate businesses and copycat scams in a way that does not damage the credibility of the legitimate business owners and "distributors". Suggestion: have a simple, user-friendly FTC web site that lists FTC approved business opportunities. If a company qualifies, they get on the list and are encouraged to include the FTC website/icon on their presentation materials. If the company isn't listed or doesn't have the FTC site/icon on their presentation materials, people will know they are taking a risk. Legitimate business would be pleased to promote the FTC site!