According to this court document, Quixtar’s non-compete is ruled "unenforceable".
I picked up this story via a web log called The Quixtar Whistle Blower.
No comment yet from the IBOAI, Amway, Alticor or Quixtar.
I’m no Denny Crane, so I’ll ask this as a question, does this ruling allow Quixtar IBOs to leave and build a profitable business with another company if they choose to do so?
The judge basically said that because of the huge geography area, the non-compete can not be enforced.
The Insider/IBOFightBack/Amway Truth spin is that Quixtar is an Internet business and companies have enforced non-compete of this nature over large geography.
However, Quixtar isn’t really an Internet business in the sense that IBOFightBack would like you to think. The marketing and sales arm (IBO) of Quixtar has nothing (or very little) to do with the Internet. Quixtar IBOs don’t use the Internet for marketing. The Internet is simply an ordering mechanism. The real business happens all across the country in living rooms, dens and hotel conference rooms.
Big loss for Quixtar. Big gain for Quixtar IBOs who are ready to move forward and make an impact in 2008.
