May 16, 2008

The Mary Kay Reseller Lawsuit

I am going to give a MK supporter equal consideration or time about the Mary Kay reseller lawsuit.

A former MK distributor, frustrated about the lack of internet selling, decided to set up an opportunity allowing MKer's with excess inventory to sell their inventory to them, and they would resell -primarily through eBay.

MK has sued the reseller.

Without further ado, let's hear the MK side.

Liquidators--Let's Discuss: "

We have been discussing 'THE LAWSUIT' on the previous topic and, of course, it is being discussed on other sites as well.  One of our loyal readers and I have corresponded off the blog a big, and realized that 'THE LAWSUIT' brings up a myriad of issues. 

I'm not sure if she wants to be identified so until she tells me it is okay, I won't do it, but she whipped up a list of the first ones that came to her mind, which are right in line with my thinking as well.  Since I am a bit pressed for time, she has graciously allowed me to copy her writings.

I would love discussion on this, both by MKers and those that are not in MK (whether former or never).

The initial conversation revolved around the fact that Touch of Pink ('TOP') has old product listed on their site for sale.  Now that in itself is not terrible, but also listed is product that Mary Kay Corporate recalled.  Does anyone remember the lip wands that developed a mold problem?  Corporate recalled these and replaced any that had been purchased.  TOP has these listed for sale.  The average Connie Customer does not know that these wands had a problem, nor does she know that the company recalled them.   If she purchases one, gets sick or disfigured, what kind of liability does Mary Kay corporate have?  This type of discussion is what led the the following list of issues as well as the understanding of why MK had to pursue this legal action.

1.  What is a consultant to do with old inventory or inventory that is about to reach its expiration date? 

2.  As recruiters/directors, what obligation do we have to our team members who are looking to get out of MK to help them liquidate?  What steps can we take?  Especialy if they're not returning our calls/emails/letters?

3.  What should we do when we receive emails from other consultants asking for products that were discontinued so long ago that they'd easily be expired now?

4.  Should we actively email MKC every instance of seeing product sold on eBay, at garage sales, etc?

5.  How should we handle it when a client comes to us to return product that is (a) expired and/or (b) they didn't buy from us?  How can we send them to 1-800-marykay without alienating them?

6.  What is our response to clients who ask about this lawsuit or PT or other negative sites or buying on eBay?

7.  What should we do if we have sold product to a liquidator?   Should a consultant call MKC and confess?  Would the punishment be less? 

I also commented that I didn't know if TOP had a return policy.  They do.  It is listed below.

TOP does offer a 30 day return policy.  Here it is:

Return Policy:

Your complete satisfaction is our top priority. If an item
you ordered from us does not meet your expectations, simply
return it by mail within 30 days of receiving it. 

No refunds will be issued on returns received after 30 days
from the purchase date. No exceptions!

We will refund your credit card for the original purchase price
or exchange the item for you.

Exchange Policy:

If you need to exchange a product, please return it
to the address below within 30 days of purchase.
Please include a note with your exchange including what you'd like to exchange,
your full name and the email address you used with your order
so we can look up your order to reship your exchange to you.

To Return Merchandise:
Simply place the item and original paperwork securely in a package and mail to:

This is quite different from corporate's return policy and I can see that Connie Customer might, after the 30 days, turn to a local consultant and try to return, exchange or get a refund, which leads back to the question above.

I have a few thoughts on all of these issues, but would love to hear from you first.

"

(Via mary-kay « WordPress.com Tag Feed.)

Now, I have a number of observations to make here - but why don't you jump in first?

May 15, 2008

We're more likely to listen to expensive advice

From the BPS Research Digest:

We're more likely to listen to expensive advice: "Whether its political spin doctors or orange-skinned health gurus, there seems no shortage of people seeking to charge others good money for the benefit of their wisdom.

Regardless of the quality of this advice, one thing is for sure: The fact that someone has paid for it, means it is more likely to be heeded.

That's according to Francesca Gino at Carnegie Mellon University, whose new study shows that we're more likely to use advice we've paid for than advice that's free, even if there's no difference in quality between the two sources.

Dozens of students were asked questions about American history and received small cash prizes for correct answers. The students were either given the option of receiving advice on the correct answers, or advice was imposed on them.

Sometimes this advice was free; other times it was paid for out of the students' winnings. Crucially, the advice always came from the same source - in the form of the answer that a student from a pilot session had given to the same question - so the quality of advice was held constant regardless of whether it was free or paid for.

Throughout the study, the participants took more account of advice they had paid for than advice they were given free, even though it was made clear to them that the advice was of the same quality.

A final study showed the students took even more account of advice if it was made more expensive.

(Via BPS Research Digest.)

This explains why few individuals purchase investigative services prior to purchasing a franchise: they know that they would accept the advice, which does not comport well with their American dreams.

Most sophisticated attorneys would recommend few franchise systems based on the fairness of the contract - but few want to know this.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ... 440 Next

Ads

Law Blogs - Blog Top Sites

Recommended Reading

How to Subscribe

Privacy Policy

Subscribe with email or RSS

Enter your email address:

Delivered by FeedBurner

Recent Comments

michael webster on Want to Buy a Quiznos? Listen Up.: Bobby; I think that Franchiso

michael webster on Tracy and I need Your Help : Tracy, I am in the same positi

Tracy Coenen on Tracy and I need Your Help : How's it going for you, Michae

bobby on Want to Buy a Quiznos? Listen Up.: why is that evryone expects to

s kalpna sharma on Telemarketing Sales Sentenced on Fraud Charges: Dear readers some of the paid

Actual Ex-Employee on Frank Russo's Alleged Ponzi scheme: "Vera" is David G. Kinney. He

Samantha on Coastal Publication Biz Op Fraud: I've heard that they are based

michael webster on Interlake Chemicals and Glen Stroud: Very interesting post. I put

Troy on Interlake Chemicals and Glen Stroud: David, I am in the chemicals

Anthy on Is ACN a Pyramid Scam?: I attended an info session las