Thursday, March 24, 2016

Is Vector Marketing a scam?

Sort of.

Vector Marketing is the sales branch of Cutco, a cutlery manufacturer. Potential employees are recruited via ads and fliers on the internet and college campuses, but job descriptions are generally either deceptive or very vague. The actual job being offered is that of an sales representative who sells Cutco products (generally kitchen knives) to customers, which the employee would need to find on his/her own. Vector Marketing employees are considered independent contractors, and are not paid for training and other mandatory meetings nor reimbursed for common business expenses such as transportation. Previously, employees were also required to purchase the knives themselves in order to use them for demonstrations for potential customers, though this practice has been discontinued.

Vector Marketing employees are not given a salary and are instead paid by commission, starting at a lowly 10%, which can scale up to 30% if enough sales are made. Because employees are expected to find their own customers, it's possible to not earn any money. Losing money is also a possible scenario, since travel costs are not covered, and this was especially the case in the past when employees were required to purchase a set of knives for demos.

Vector Marketing has been sued numerous times for their deceptive business practices. They were sued in 1990 by the Arizona Attorney General, and were ordered to stop providing dishonest information to recruits. A similar order was also handed to them by the state of Wisconsin in 1994. In 2003, a recruit successfully sued them for failing to adhere to labor laws, and later formed Students Against Vector Exploitation (SAVE) to warn other college students about the company. Most recently, they settled a class action lawsuit for $13 million in 2008.