| Comment Number: | 522418-12655 |
| Received: | 7/17/2006 11:25:58 PM |
| Organization: | Quixtar |
| Commenter: | Billy Altman |
| State: | AR |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
In regards to the FTC's proposed business rule, as a Quixtar Independent Business Owner, I do support reasonable business disclosures that are fair and help consumers make wise choices. I believe the rule should create a level playing field by requiring clear, simple, and standardized income disclosures that apply to all direct sellers and should provide a reasonable cancellation policy. However, I do not feel that it should not require a seven-day waiting period before a prospect could register. The waiting period seems to infringe the freedoms of enterprise and choice. Adults of legal age should be able to make a decision without having to go through a government imposed waiting period, particularly if a reasonable cancellation policy is in effect. If I were to hire someone to go to work for me at my graphic design company, they would not be required to wait 7 days from the time I offered them the position until they could accept it. Additionally, if, for example, someone was to buy a house or an automobile, they are not required to wait 7 days before they can do so. And in that case, they are not even offered a refund or cancellation policy. I feel that imposing a waiting period constitutes infringement of basic rights. I also do not believe that the FTC should require IBO references be provided to prospects or disclosure of past litigation. There are a lot of privacy issues involved with giving out referenes. It also may be extremely difficult for a new business owner to compile a list of 10 references to give to a prospect. What if there are no other IBOs in his or her area? Additionally, having to disclose past litigation is not only cumbersome, but it is unfair. Unfortunately there are many people who are out to somehow make a quick buck by sueing anyone and everyone they can by briging ridiculous and unfounded claims against them. Is Wal-Mart required to give a potential employee a list of every legal allegation from the past 10 years? Of course not. Neither should any other business. I also feel the rule should not require financial records to be disclosed to prospects. A standardized income disclosure (such as the SA-4400, which is used by Quixtar IBOs) is sufficient. My particular level of achievement is not an indicator of a prospect's future income. It all depends on the effort he or she puts into his or her own business. I feel that all financial claims to a prospect should be based on a standardized income disclosure statement. Honestly, I believe the bottom line is that the problem is not with legitimate businesses like Quixtar. We already have a standardized income disclosure that we provide to prospects and an extremely generous cancellation policy (6 months on products and 12 months on business registrations). There is no way people can be taken advatage of. They have 6-12 months to change their minds! Unfortunately, the problem is with other, non-legitimate companies that are taking advantage of people and lying to them and stealing from them. Those companies are already breaking the law. A new rule that makes it more difficult for legitimate businesses to successfully and smoothly operate is not going to affect those companies because more than likely they are not going to comply anyway. I also feel that people are capable of making informed decisions and researching things for themselves. Organizations such as the Better Business Bureau are a great resource for people who want to look into the legitimacy of a company. Again, I do feel that it would be wise and fair to require all direct marketing companies to provide income disclosures. I also feel that it is fine to require a reasonable cancellation policy. However, I truly feel the other issues that I previously addressed would only serve to complicate and slow down the growth of my legitimate business and would not actually be of tue help to anyone. Thank you for your time and consideration.