Vector Marketing
 |
| File:Vector Marketing logo.png | |
| Company type | Private |
|---|---|
| Industry | Marketing |
| Founded | 1981[1] |
| Headquarters | Olean, New York, U.S. |
| Website | www.vectormarketing.com |
Vector Marketing is the domestic sales arm of Cutco Corporation, an Olean, New York based cutlery manufacturer.
Business model
Vector Marketing is a multi-level marketing group which builds its work force through advertising via newspapers, direct marketing, word-of-mouth, posted advertisements, letters and various mediums on the internet.[2][3] Their fliers advertising "student work" are a common sight in many high schools and college campuses across the United States and Canada. Students are hired to market Cutco products (mainly kitchen knives) to customers, typically their friends and family members via one-on-one demonstrations.[4]
Controversy and criticism
Some of Vector Marketing former independent contractors have accused Vector Marketing of unsavory business practices.[5][6] Vector frequently advertises in newspapers and on fliers posted on bulletin boards at college campuses, but seldom do those advertisements explain the nature of the job.[7]
Vector Marketing requires sales representatives in 44 states (excluding Wisconsin, Oregon, Iowa, Illinois, Pennsylvania, and New Jersey) to make a security deposit of approximately $150 (25% of the samples' market value, plus tax where applicable) in order to procure a set of knives for demonstrations, prompting some to complain about this policy (the deposit is refundable if a representative chooses to quit or the contract is terminated and the sample kit is returned).[5][6][8] Students who work for Vector Marketing are considered independent contractors and are not reimbursed by the company for money they spend on gasoline used while working or for the time they spend at training sessions.[2][5] In the 2008 case Vector Marketing Corporation v. New Hampshire Department of Revenue Administration, the Supreme Court of New Hampshire ruled that Vector employees are independent contractors and Vector is thus exempt from the state business profit tax.[9]
Vector was sued in 1990 by the Arizona Attorney General and in 1999 by the Australian Competition and Consumer Commission. In 1994, the state of Wisconsin ordered Vector to stop providing dishonest information to recruits.[10]
In 2008, Alicia Harris filed a federal class action lawsuit against Vector. Harris alleged that Vector violated California and federal labor law by failing to pay adequate wages and illegally coerced employees into patronizing the company.[11] The case, Harris v. Vector Marketing Corporation, is pending before Judge Edward M. Chen.
See Also
References
- ^ Vector "Company History" http://www.vectormarketing.com/Company-History.php
- ^ a b Deal, A. Matthew (2006-09-26). "High wages for student work - but beware". Campus News. The Carolinian. p. 1. Retrieved 2008-06-05.
- ^ Summer Job: Nice Pay, if You Can Cut It, Wall Street Journal, August 5, 2008
- ^ Episode 10. Street Cents, January 14, 2002
- ^ a b c Lucchesi, Nick (2004-02-04). "Vector Marketing targets unaware college students". News. The Journal. p. 2. Retrieved 2008-06-05.
- ^ a b da Costa, Polyana (August 21, 2004). "Firm misled sales recruits to sell knives, students say". Salem Statesman-Journal. Archived from the original on July 4, 2008.
- ^ Holt, Shirleen (February 22, 2004). "Help-wanted pitch may have surprise curve". The Seattle Times. Retrieved July 24, 2010.
- ^ Anderson, Matt (2004-10-06). "Vector policies questionable". News. Sidelines. p. 1. Retrieved 2008-06-05.
- ^ Vector Marketing Corporation v. New Hampshire Department of Revenue Administration, New Hampshire Supreme Court case no. 2007-0330.
- ^ "Student Group Wants to Slice Up Vector". Consumeraffairs.com. August 12, 2003. Retrieved May 21, 2010.
- ^ Chen, Edward M. (September 4, 2009), "Order Granting in Part and Denying in Part Defendant's Motion for Summary Judgment", Harris v. Vector Marketing Corporation, United States District Court for the Northern District of California