|Received:||7/17/2006 8:49:57 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I have been an independent business owner (“IBO”) with Quixtar since September 2001. When I was presented with the business opportunity, I received enough information to make an informed decision. When I present the business presentation to prospects, I also provide them with adequate information so they too can make an informed decision. The prospects understand that the business is not a “get rich quick” plan, but that hard work is required and there are no guarantees of their success. To register as an IBO costs approximately $125, which is refundable up to six months. I’d like to address a few points regarding the proposal. The requirement to provide references: This would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also be unfair to a potential sponsor, who would be required to give his prospect contact information for 10 other IBOs, any of whom may register the prospect instead of the IBO who shared the business opportunity initially. The requirement to provide a “litigation list”: The proposal doesn’t adequately cover what a “seller” is, meaning that IBOs may have to list all litigation involving Quixtar itself, its thousands of affiliates, as well as the entire IBO force across the country. This would open up Quixtar and other legitimate companies to false accusations. The requirement for financial substantiation: IBOs should possess substantiation for any claim (i.e., lifestyle change, debt reduction, retirement) but should not be required to disclose it to prospects. This is personal financial information that should have no bearing on the prospect’s decision to become an IBO. An IBO should only be required to disclose financial information if required by the FTC and similar state agencies in an agency investigation.