DS MAX (henceforth DSM,) is, as I understand it, a franchiser so it goes under almost as many names as it has offices. This means it is very hard to pin down. All of its offices are held by franchisees and so are legally separate from itself. All of these direct sales offices are mandated to sell exclusively DSM merchandise and in exchange to use DSM livery and promote the 'DSM opportunity.'
The 'opportunity' is, put briefly, as follows; one learns the entry level sales with no prerequisite experience. Having displayed a certain level of competence and consistency one attains promotion to 'Trainee Management' where one has to build a team by passing on these skills to other new recruits. When this team reaches a certain size and competence (sales and Trainee Managers) you can take your team to open up a new office of your own. At this point you make full owners profit. You make more $ by promoting your guys into their own offices.
Throughout it is promoted that everyone is running their 'own bussiness.' Everyone is an independent contractor and mandated to sell, or sub-consign, DSM merchandise. Hence DSM holds their sole means of making money (merch,) itself makes money on their sales but is in no way at all obliged by what they might do, or fail to do. It can fire / disassociate itself from any one of its owners or field reps at any time answering only do itself as they are 'independent contractors' not employees.
At the same time the psychological hold it exerts by relentless promotion of 'The Opportunity' enables it to order its people around left right and centre. People want to believe that it really is their 'chance to make it.' That is why the staunchest defenders of DSM are its very victims! Anyone who doesn't BELIEVE will shortly disappear or be removed anyhow.
The crux of the matter is this; if you are contractually mandated to sell exclusively DSM merchandise then it can fire you at anytime on a whim by refusing to consign you any more. You may own the bussiness on paper but if it controls your only merch supply it really controls everything. However the company is in your name, not DSM's, so anything goes wrong then you, and not it are liable.
So, let's say our good-looking, blue-eyed, 21 year old, all American poster boy works his way into, er, 'ownership.' He makes lots of sales and so $ and so is feted by DSM who, fairly enough, make $ on what he does.
Then he gets too big for his boots. He gets corrupt. He starts bullying, ripping off and generally doing over his field guys. He might sexually abuse or harass the women in his office or steal from the guys' company savings accounts. You name it. If DSM decide that association with him is more trouble than the profit they get from 'his' office is worth they can disown him and say it was because he was so evil but none of his victims have any legal claim against DSM. He was a contractor, not employee! Of theirs and they were contractors of his.
Hence DS Max makes lots of profit without any legal responsibility for the way it is made or for the people who make it. Profit without reponsibility is immoral. Before 1989 it was perfectly legal in the U. K for a married man to have forcible sexual intercourse with his wife as marital 'RAPE' did not exist in law. Like DSM his actions were wholely LEGAL BUT GROSSLY IMMORAL.
Luke
Newcastle upon Tyne
United Kingdom
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