| Comment Number: | 522418-05357 |
| Received: | 6/30/2006 7:31:48 PM |
| Organization: | Quixtar.com |
| Commenter: | Shehzad Khoja |
| State: | GA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Hello FTC Team: I have been a Quixtar IBO since 2001. Due to this business opportunity, I have learned quite a bit about business concepts and people skills. My next goal as an IBO is to replace my wife's income from her job. The Quixtar business easily fits into my current lifestyle as it does not jeopardize my full time work and allows me to work with my spouse. In addition to the income benefits, there are intangible benefits like a better marriage, association with positive people, and a better understanding of business in general. When I saw the business plan initially, I was strictly interested for the income opportunity. But the intangible benefits are priceless. When I share the business plan with others, I share the basic 6-4-2 marketing plan which is approved by the FTC. I let my prospects know that the business is long term in nature, not a overnight get rich quick plan. My prospects understand that success is not guaranteed, that the opportunity does take work. As far as the proposed new rule is concerned, I do have some recommendations. Problem 1: Prospects would have to wait 7 days after receiving disclosures before they could register. Solution: Eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. Problem 2: You would be required to give every prospect a list of "references" – the names, addresses, and phone numbers of 10 other IBOs in the area – seven days before the prospect registers. This requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also penalize the sponsor, who would be required to give his prospect contact information for 10 other IBOs, any of whom might be happy to register the prospect themselves. Solution: Eliminate the requirement to provide 10 references. Problem 3: You would have to give every prospect a list of all lawsuits, arbitrations, or other legal claims for the past 10 years involving Quixtar or its IBOs where the plaintiff alleged fraud, misrepresentation, or unfair trade practices – regardless of whether or not the accusation was true. Among other problems, this requirement would open up Quixtar and other legitimate companies to false accusations. Meanwhile, dishonest companies would simply ignore the rule. Solution: Eliminate the requirement to disclose past litigation. Problem 4: You would have to make a different disclosure for every income claim.This would include any examples you might use during an opportunity presentation to illustrate how the Plan works. Solution: If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." Problem 5: You would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. Solution: IBOs should possess substantiation for any claim but should not be required to disclose it except when required by the FTC and similar state agencies in an agency investigation. I can be reached on my cell phone at for further comment. Thanks, Shehzad Khoja Quixtar IBO