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linked from Cagey Consumer Highlights web search for Cagey Consumer Highlights
The most prominent story published recently about DirectBuy would be this one from the Consumer Reports Money Adviser: DirectBuy ConsumerReportsBlog 20070913 web search for DirectBuy ConsumerReportsBlog 20070913.

Such negative coverage can be expected to cut down on the flow of new members, and without new members, many of the existing DirectBuy franchise owners could be forced to close, since it's the membership fees that provide the main source of income for DirectBuy franchisees.

There's a potential for a domino effect here: new stories reduce income from membership fees, DirectBuy centers close, existing members, finding they are holding the bag, might conceivably look to DirectBuy's business partners who lured them into the showrooms where they were promised the big savings. Regulators at state and federal levels could also become involved, if it's determined that DirectBuy memberships constituted a security which required registration.

Farfetched? OK, this may not be the most likely scenario. Plenty of people will never see the negative press that DirectBuy gets and still plunk down the membership fees of $5k or more. Even if DirectBuy centers close, the members will probably just be stuck holding the bag. But we have a litigious society, and a lot of people who will feel they were cheated. Many other businesses profited from all of the money DirectBuy spent on infomercials and other advertising. It's only fair that those who profited from promoting DirectBuy should be penalized for the losses they have caused.

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Revision r1.1 - 29 Sep 2007 - 04:14 by EliMantel web search for EliMantel
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