In response to the letter from Quixtar to TEAM-affiliated Platinums, TEAM sent out the following to TEAM IBOs. I’m no lawyer, but I wouldn’t be surprised if this communication violates the temporary restraining order that Quixtar obtained last week.
To All Team Customers,
As you are all aware, Quixtar has recently issued a shocking ultimatum to all Team Platinums. This ultimatum is simple: sign or be suspended. As noble as Quixtar’s “submit or die” approach may be, Quixtar IBOs need not dignify this ridiculous request with a response, unless of course you agree to the additional terms.
In this ultimatum, Quixtar states,
The Team organization has been put on notice that they no longer are an authorized supplier of IBO education and training to Quixtar IBOs. It is important for you to know that the sale, distribution, and/or promotion of any Team-related business support materials (BSMs), including Team-sponsored meetings or functions, to Quixtar IBOs violates the Quixtar Rules of Conduct.
When I first read this, I thought to myself, “I wonder what Charlie Jones is going to do now that he’s prohibited from selling books to Quixtar IBOs.” On its face, this statement runs contrary to Quixtar’s own Rules. If you were to dust off your Quixtar Rules of Conduct, Rule 7.1 clearly states that all prospecting material needs to be authorized by the company. Specifically, Rule 7.1.3. states, “IBOs who have received authorization to use BSM from the Corporation in accordance with these Rules of Conduct shall place on the BSM the following legend or its equivalent: ‘Content Reviewed,’ followed by the content review identification number.”
Ironically, about four months ago, Quixtar employees came to the Team office and sat in during the recordings of our Part 2 series. We worked hand in hand with the corporation to produce these recordings, and they were approved for sale. If you have your Part 2 CDs on hand, you will be able to note the “content review number” on the CD. As Rule 7 states, authorization is required for all prospecting material, but not for IBO Only material. But whatever. I feel like I’m back in third grade playing kickball making up the rules as I go. Before the game was over, there were 2.5 outs per inning. Go figure.
The email also states, “At this time, we need a signed commitment from you that you intend to continue your business in full compliance with the criteria listed above. Signing this letter in the space provided below signals to us that you are committed to pursuing a Quixtar business within the Rules of Conduct and that you will no longer promote the use of Team BSMs. Please send a copy of this letter bearing your signature via fax to 616/787-4691 by Noon, EST, Monday, August 2, 27. If we do not hear from you by that time, your business will be suspended by close of business Monday.
Although the above language seems valid, Rule 3.8 in the Quixtar Rules of Conduct states, “Notice of Intent to Continue: In order to remain an IBO, an IBO must annually file a Notice of Intent to Continue (SA-469) to operate his or her IB by December 31 of the year preceding the year for which the IBO is renewing. Such notice may be filed by utilizing the Corporation’s touch-tone or online renewal system, mailing form SA-469, in which case it must be postmarked by December 31, or any other means deemed appropriate by the Corporation. The Corporation reserves the right to limit the method(s) available for said filing. Failure to timely file an Intent to Continue may result in the loss of IBO’s downline.” In this rule, it does not state that Quixtar can force you to renew their contract under duress of suspension. And if they wanted to change the rules, there’s a rule for that! In Section 1, before the Rules get remotely interesting, “From time to time, the contents of these documents are changed. The Corporation will, prior to final action, submit to the IBOA International Board for discussion, evaluation, and recommendation changes within these documents which may materially affect IBOs including, but not limited to, changes to the IBO Plan, IBO agreements, and modifications to the Rules of Conduct for IBOs.”
So you might ask, “What’s going on?” When you figure it out, please let me know. In my opinion, this recent tactic is nothing more than a retaliatory response to the class action lawsuit that was filed in California. Or, it’s pure coincidence. I’ll let your common sense be the judge. Unfortunately, Quixtar is being cavalier with thousands of lives in an effort to hurt the plaintiffs. As the saying goes, “Adversity doesn’t build character, it reveals it.” Within the past few days, we are seeing some of the true colors of this corporation.
Regarding this email, use your own judgment. We can’t predict the future, but we will promise to fight for you in the event you are treated unjustly.
Team Executive Staff
August 17, 27
511 Spaulding Plaza SE
Ada Twp., MI 4931
NORTH AMERICAN FOUNDERS COUNCIL
c/o QUIXTAR, INC.
511 Spaulding Plaza SE
Ada Twp., MI 4931
INDEPENDENT BUSINESS OWNERS ASSOCIATION INTERNATIONAL
22 Lyon St. NW
Grand Rapids, MI 4953
I am writing on behalf of TEAM, the d/b/a for Signature Management Team, LLC in connection with your campaign of threats, intimidation and falsehoods against us and against independent business owners ("IBOs") who do business with Quixtar. That campaign includes communications through broadcast emails, website postings and individual email, telephonic and facsimile communications. Such communications, include without limitation the following:
- Email sent on August 9, 27 to "Team affiliated IBOs," a copy of which is attached hereto as Exhibit A;
- Email sent on August 1, 27 to "IBOs affiliated with Team or using Team training," a copy of which is attached hereto as Exhibit B;
- Email sent on August 11, 27 to "Qualified Platinums and above," a copy of which is attached hereto as Exhibit C;
- Email sent on August 14, 27 to "titled "Message from Quixtar, North American Founders Council and the IBOAI Board," a copy of which is attached hereto as Exhibit D;
Pursuant to M.C.L. 6.2911 (the "Act"), we hereby demand that you publish a retraction, in the manner and within the time specified in the Act, but not later than 5: p.m. EST on August 18, 27 (the "Retraction Deadline") of the false, misleading, defamatory and disparaging statements (the "False and Defamatory Statements") made by you and/or on your behalf in those and similar communications. We make the same retraction demand with respect to any similar communications made by you or on your behalf which are of the same tenor, purpose or effect relating to us or any of our members or affiliates.
Pursuant to the Act, if retractions satisfactory to us are not made by the Retraction Deadline, we will assert all rights provided for in Section 2(b) of the Act and otherwise under state and federal law, including our rights under the Lanham Act. In addition, we reserve all rights to seek damages for all losses caused by the False and Defamatory Statements.
We hereby demand that you cease and desist from any communications that include or refer to False and Defamatory Statements and from your campaign of threats, lies and intimidation that interfere with our contractual relationships and business and economic expectations.
It is clear that the False and Defamatory Statements and your communications to IBOs are simply one more initiative in your program to use the prestige and power of Quixtar and its affiliates into acting against the IBOs’ independent interests for your sole benefit. It is extremely disappointing to many who have been loyal partners of Quixtar to see Quixtar’s willingness to violate its own rules to harass and intimidate IBOs.
We would have preferred to permit our dispute to have been resolved in the action pending in California. However, your outrageous statements have left us no alternative but to attempt to correct the record so that IBOs will have complete and accurate factual information on which to base their independent business decisions.
Very truly yours,
Robert L. Dickie, III
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