Attention: All Women who are considering a part-time career in direct sales for a scrapbooking company. Here's the story about Scrap in a Snap. They are a MLM direct sales company that sells scrapbook supplies through independent consultants at home parties. They're business model is similiar to other direct sales companies like Mary Kay, Avon, Creative Memories, Southern Living at Home, etc. However, these other companies that are mentioned (Mary Kay, Avon, Creative Memories, Southern Living at Home are very respectable, honorable companies and do not in any way operate their business like Scrap in a Snap).
Scrap in a Snap claims to have approximately 12,00 consultants selling their products in the US. Most of these consultants have been taken advantage of by this company and ripped off for a long time. If you are a current consultant or considering signing up as a consultant, you need to know what they are doing - BEWARE! Hopefully, the IRS and/or some of the state consumer protection division offices will be shutting them down soon.
1. They send bad checks to their consultants.
Scrap in a Snap, for the past several months will send out checks to their consultants that can not be cashed. These consultants try to cash their checks and the checks come back as NSF. This is a violation of state law and some of these violations are felonies.
2. Failure to pay earned commissions.
Scrap in a Snap, will determine who they will and will not pay depending upon what they feel like doing. There are a number of consultants who haven't been paid owed commissions in a number of months. Further, every consultant has a contract with the company. This doesn't matter to Scrap in a Snap. If they don't feel like paying a consultant their earned commission, it won't be paid.
3. They will hold checks on select consultants. If you become a successful consultant with Scrap in a Snap, you can expect that your commission check will be sent weeks after other consultants have received theirs. Some consultants have been treated like this for months and months. Then, when they do receive their commission checks, they usually are NSF anyways.
4. They have purposely mis-calculated commission checks. There is information that the company has paid on occasion a lower commission rate to consultants than their contract dictates. They then hide this fact from their consultants. The commission calculation process is a bit complex so most consultants don't even know when they are being ripped off.
5. Consultants are not paid all of their earned commissions. Scrap in a Snap has been known to just not pay consultants certain types of commissions, when owed. For example, if a customer calls the company directly and places an order - many consultants have reported to have never received a commission for the sale to their customer. This is contrary to their contract and another scam by the company.
6. CREDIT CARD FRAUD!!!
Consultants have reported that they place an order, are then charged for the order on their credit card, but often do not receive the order until months later. This is an obvious violation of Federal Trade Commission rules. Further, consultants also report that if they place an order and some of the items are out of stock, they are not credited the difference back onto their credit card.instead, the consultant is given a store credit only, called "Scrappy Bucks". For example, if you place and order for $100 and only $20 of product is in stock (which is often the case). You're credit card will be charged $100 and you'll receive $20 in actual product and $80 in "Scrappy Bucks". They don't even have the courtesy of putting products on back order or only charging you for what you receive. This is a total scam and I believe highly illegal. If this happens to you, contact your credit card provider at once.
7. STATE SALES TAX FRAUD!!!
Every consultant signs a contract stating that Scrap in a Snap will take all state sales tax money and send this money directly to each state that the consultant is registered in. Scrap in a Snap has already received the appropriate state sales tax from the consultant directly. However, Scrap in a Snap has never paid their state sales tax proceeds back to the state - and this has gone on for a number of years. The only state that is believed they are even registred in with a seller's permit is UT. They are ripping off not only every single consultant, but also the other 49 states by not paying these states their owed state sales taxes. I don't know, but the states may go after individual consultants because of the gross fraud of this company. Don't let yourself be in this situation. Further, many consultants have already reported this action to their individual states. If you are concerned about this, you are encouraged to call your state department of revenue and have this company investigated for tax evasion.
8. TERMINATION OF CONSULTANTS FOR NO REASON!!!
The company must be in dire straits. They actually have employees who peruse private message boards such as Yahoo! Message boards and look for any consultant who questions this company and how they run their business. If Scrap in a Snap doesn't like what you say about the company, they will terminate you as a consultant immediately. No questions asked.
9. FEDERAL TAX FRAUD!!!
This information can't be 100% confirmed, but insiders have said that the company hasn't paid their federal payroll taxes for their employees - we have no idea how long this has been going on. Further, insiders have also said that the company itself and the president of the company hasn't filed federal income taxes in a number of years. Obviously, if true, this would be critical violation of federal law.
Don't be victimized by working with such an unethical company. Scrap in a Snap does not run their business honestly and we all need to take action to get them to shut their doors. They have taken advantage of way too many people. Don't become their next victim! If you are a consultant, you are encouraged to call your state attorney general's office and the state department of revenue to file a complaint about their actions.
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