Examine individual changes

'{{short description|American multi-level marketing company}} {{Use mdy dates|date=July 2011}} {{Infobox company | logo = Vector Marketing logo.svg | name = Vector Marketing | type = [[Subsidiary]] | foundation = 1981 | location = [[Olean, New York|Olean]], New York, US | num_employees = | parent = [[Cutco Corporation]] | industry = Sales | revenue = | products = | homepage = {{URL|http://www.vectormarketing.com/}} }} '''Vector Marketing''' is a [[multi-level marketing]] subsidiary company and the domestic sales arm of [[Cutco|Cutco Corporation]], an [[Olean, New York|Olean]], [[New York (state)|New York]]-based [[cutlery]] manufacturer.<ref name="PS">{{cite news|last1=Moret|first1=Darrin|title=Did I Participate In A Pyramid Scheme?|url=http://www.popsci.com/science/article/2013-09/did-i-participate-pyramid-scheme|accessdate=May 31, 2017|publisher=[[Popular Science]]|date=September 6, 2013}}</ref><ref name="LP">{{cite news|last1=Behm|first1=Carly|title=Students Question Company’s On-Campus Recruiting|url=http://loyolaphoenix.com/2016/10/students-question-companys-campus-recruiting/|accessdate=May 31, 2017|publisher=[[Loyola Phoenix]]|date=October 19, 2016}}</ref> ==History== Vector Marketing Corporation is a wholly owned subsidiary of Cutco Corporation. The firm originated in a joint venture between [[Alcoa]] and [[Case Cutlery]] known as Alcas Corporation.<ref name=":0">{{Cite news|url=http://www.oleantimesherald.com/news/alcas-changing-its-name-to-cutco/article_01a12262-7546-5627-9108-790b5b8b522b.html|title=Alcas changing its name to Cutco|last=Shaw|first=Jeff|date=December 20, 2008|work=Olean Times Herald|access-date=May 26, 2018|language=en}}</ref> In 1947, It completed a factory in [[Olean, New York|Olean]], [[New York (state)|New York]], and shipped the first set of Cutco Cutlery that year. In 1974, Alcoa purchased Case Cutlery's share of Alcas.{{citation needed|date=October 2018}} In 1982, members of Alcas management purchased the firm in a [[management buyout]], and in 1985 they acquired Vector Marketing,<ref name=dartmouth>{{cite news |last1=Smul |first1=Jack |title=Cutco: Schemers or Success Story? |url=http://dartmouthbusinessjournal.com/2016/12/06/cutco-schemers-success-story-2/ |work=Dartmouth Business Journal |date=6 December 2016}}</ref> originally an independent distributor of Cutco Cutlery founded in 1981.<ref name="SB1">{{cite web|url=http://www.independent.com/news/2011/aug/02/company-cuts-both-ways/|title=The Company that Cuts Both Ways|author=Robbins, Rebecca|date=August 2, 2011|publisher=Santa Barbara Independent|accessdate=August 2, 2011}}</ref> In 2009, Alcas changed its name to [[Cutco|Cutco Corporation]], with Vector its domestic sales subsidiary.<ref name=":0" /> ==Business model== Vector Marketing is a multi-level marketing company that builds its sales force through advertising via newspapers, [[word-of-mouth]], posted advertisements, [[mail|letters]] and various media on the internet.<ref name=PS/><ref>{{cite news|last=Kellman|first=Beth Robinson|title=Better Business Bureau offers advice on multilevel marketing|url=http://www.theoaklandpress.com/articles/2010/04/02/news/local_news/doc4bb6bcef66c20482812527.txt?viewmode=fullstory|accessdate=May 19, 2011|newspaper=[[The Oakland Press]]|date=April 2, 2010|location=[[Oakland County, Michigan]]}}</ref><ref name="carolinian">{{cite news|last=Deal |first=A. Matthew |title=High wages for student work – but beware |work=Campus News |page=1 |publisher=The Carolinian |date=September 26, 2006 |url=http://www.carolinianonline.com/2.7350/high-wages-for-student-work-but-beware-1.1030148 |accessdate=June 5, 2008 |deadurl=yes |archiveurl=https://web.archive.org/web/20110815175911/http://www.carolinianonline.com/2.7350/high-wages-for-student-work-but-beware-1.1030148 |archivedate=August 15, 2011 }}</ref><ref name="Wall Street Journal">{{cite news|last=Gunn|first=Eileen|title=Summer Job: Nice Pay, if You Can Cut It|url=https://www.wsj.com/articles/SB121789140861111649|accessdate=April 21, 2011|newspaper=[[The Wall Street Journal]]|date=August 5, 2008|page=D4}}</ref> They recruit sales representatives from high schools and [[college campus]]es in the United States and Canada, sometimes through misrepresentation of affiliation with the school.<ref name="SB1"/> Students are employed as independent contractors to sell Cutco products (mainly [[kitchen knife|kitchen knives]]) to customers, typically their friends and family members, via one-on-one demonstrations.<ref name="SB1"/><ref name="cbc">Episode 10. [[Street Cents]], January 14, 2002 [https://web.archive.org/web/20120618131050/http://www.cbc.ca/streetcents/archives/guide/2001/10/s02_01.html Online copy] at the [[Internet Archive]]</ref> Some of Vector's former independent contractors have accused Vector Marketing of deceptive business practices.<ref name="websteruniv">{{cite news|last1=Lucchesi|first1=Nick|title=Vector Marketing targets unaware college students|url=http://media.www.webujournal.com/media/storage/paper245/news/2004/02/04/News/Vector.Marketing.Targets.Unaware.College.Students-596811.shtml|accessdate=June 5, 2008|work=News|publisher=The Journal|date=February 4, 2004|archiveurl=https://web.archive.org/web/20110427204416/http://media.www.webujournal.com/media/storage/paper245/news/2004/02/04/News/Vector.Marketing.Targets.Unaware.College.Students-596811.shtml|archivedate=27 April 2011}}</ref><ref name="Statesman">{{cite news|last=da Costa|first=Polyana|title=Firm misled sales recruits to sell knives, students say|url=http://news.statesmanjournal.com/article.cfm?i=85450|newspaper=Salem Statesman-Journal| date=August 21, 2004|archiveurl=https://archive.is/20080704103247/http://news.statesmanjournal.com/article.cfm?i=85450|archivedate=July 4, 2008}}</ref> The firm 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.<ref>{{cite news|last=Holt|first=Shirleen|title=Help-wanted pitch may have surprise curve|url=http://community.seattletimes.nwsource.com/archive/?date=20040222&slug=jobads22|accessdate=July 24, 2010|newspaper=The Seattle Times|date=February 22, 2004}}</ref> In addition to vague job descriptions, Vector Marketing's compensation policies are often criticized. Vector Marketing previously required sales representatives to make a refundable [[security deposit]] to procure a set of knives for demonstrations. However the practices have changed and representatives are no longer required to make a security deposit. They are loaned knives as well as given some as prizes for their "Fast Start" sales achievements.<ref name="websteruniv"/><ref name="Statesman"/><ref name="sidelines">{{cite news|last=Anderson|first =Matt|title =Vector policies questionable|page =1|work=MTSU Sidelines|date =October 6, 2004| url=http://media.www.mtsusidelines.com/media/storage/paper202/news/2004/10/06/News/Vector.Policies.Questionable-743131.shtml|accessdate =June 5, 2008}}</ref> Students who work for Vector Marketing as independent contractors are not reimbursed for transportation expenses and other common business expenses while working, or for the time they spend at training sessions.<ref name="carolinian"/><ref name="websteruniv"/> ==Lawsuits== In 1990, the [[Arizona Attorney General]] sued Vector for alleged deceptive recruiting techniques. After seven years of legal proceedings, the case was resolved in a settlement, which required Vector to reform its advertising of its compensation system in Arizona.<ref name="WaPo1996"/><ref name="SB1"/> In 1994, Wisconsin ordered Vector to stop deceptive recruiting practices, leading the company to temporarily stop recruiting in the state.<ref name="SB1" /><ref name="WaPo1996">{{cite news |last1=McKay |first1=Peter |title=For vector marketing, the question of the hour |url=https://www.washingtonpost.com/archive/business/1996/07/01/for-vector-marketing-the-question-of-the-hour/27351801-eb79-49c0-93e9-ca9c73cc648e/ |accessdate=November 7, 2018 |publisher=[[Washington Post]] |date=July 1, 1996}}</ref><ref name="WSJ1994">{{cite news |last1=Johnson |first1=Paul |title=Vector suspends recruiting |url=https://newspaperarchive.com/madison-wisconsin-state-journal-apr-21-1994-p-51/ |accessdate=November 7, 2018 |publisher=[[Wisconsin State Journal]] |date=April 21, 1994}}</ref> In 2003, a recruit who was successful in a lawsuit against Vector for failing to adhere to labor laws in New York, co-founded a group, Students Against Vector Exploitation (SAVE).<ref name="Gripenstraw">{{cite news| last=Gripenstraw| first= Kelsey| title=Beware of Campus Scams|url=http://thebottomline.as.ucsb.edu/2011/04/beware-of-campus-scams|accessdate=May 18, 2011|newspaper=The Bottom Line|date=April 20, 2011|location=[[University of California, Santa Barbara]]}}</ref> 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 coercing employees into patronizing the company.<ref>{{Cite journal|last=Chen|first=Edward M.|title=Order Granting in Part and Denying in Part Defendant's Motion for Summary Judgment|url=http://docs.justia.com/cases/federal/district-courts/california/candce/3:2008cv05198/208948/71/|work=Harris v. Vector Marketing Corporation|publisher=[[United States District Court for the Northern District of California]]|date=September 4, 2009|postscript=<!-- Bot inserted parameter. Either remove it; or change its value to "." for the cite to end in a ".", as necessary. -->{{inconsistent citations}}}}</ref> The case, ''Harris v. Vector Marketing Corporation'', is pending a final settlement approval for US$13&nbsp;million before Judge [[Edward M. Chen]].<ref>{{cite web|work=Harris v. Vector Marketing Corporation| title=Court opinion|publisher=Justia.com| url=http://dockets.justia.com/docket/california/candce/3:2008cv05198/208948/ |accessdate=May 14, 2011|date=May 5, 2011}}</ref><ref>{{cite web| title=Preliminary approval of $13 million settlement granted despite concerns|publisher=AllBusiness.com| url=http://www.allbusiness.com/north-america/united-states-west-usa-california/15613799-1.html |accessdate=Feb 5, 2012|date=May 31, 2011}}</ref> A lawsuit in 2014 alleged that a girl was violently sexually assaulted by one of her customers while working for Vector and sued the company for not providing her with adequate training to prevent the situation.<ref name="Quad2018"/><ref name="CNS2014">{{cite news |last1=Bonner |first1=Jonny |title=Door-to-Door Saleswoman Alleges Rape|url=https://www.courthousenews.com/door-to-door-saleswoman-alleges-rape/|accessdate=November 7, 2018 |publisher=[[Courthouse News Service]] |date=August 22, 2014}}</ref> The company paid a $6.75 million preliminary settlement in 2016 for violations of the Fair Labor Standards Act in California, Florida, New York, Illinois and Michigan when workers sued for going unpaid for their trainings.<ref name="TDB2017">{{cite news |last1=Zavadski |first1=Katie |title=Cutco Probably Asked You to Sell Knives. Now It’s Getting Sued |url=https://www.thedailybeast.com/cutco-probably-asked-you-to-sell-knives-now-its-getting-sued |accessdate=November 7, 2017 |publisher=[[The Daily Beast]] |date=October 18, 2017}}</ref><ref name="TRT2018">{{cite news |last1=Roffman |first1=Otis |title=Round Table editor warns of Cutco and Vector Marketing’s exploitation of student labor |url=http://beloitcollegeroundtable.com/2018/02/05/round-table-editor-warns-of-cutco-and-vector-marketings-exploitation-of-student-labor/ |accessdate=November 7, 2018 |publisher=The Round Table |date=February 5, 2018}}</ref><ref name="Quad2018">{{cite news |last1=Walsh |first1=Sam |title=Vector marketing "preys on desperate students," sources allege |url=https://wcuquad.com/6012068/news/vector-marketing-preys-on-desperate-students-sources-allege/ |accessdate=November 7, 2017 |publisher=The Quad |date=October 14, 2018}}</ref> In September 2017, Vector was sued in a class-action lawsuit initiated by a division manager who alleged that the company was engaging in unfair labor practices because, despite his position, he was still classified as an independent contractor, thus denying him access to overtime pay. According to the suit, division managers are the highest-ranking class of workers who are not officially classified as Vector employees.<ref name="TDB2017"/><ref name="TRT2018"/> ==References== {{reflist|30em}} ==External links== {{Spoken Wikipedia|Vector_marketing_spoken_word.ogg|{{Start date|2011|8|16}}|3 mega}} *{{official website|http://vectormarketing.com/}} [[Category:Companies based in Cattaraugus County, New York]] [[Category:Companies established in 1981]] [[Category:Multi-level marketing companies]] [[Category:Marketing companies of the United States]]'