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Out of compliance?

Personnel Concepts’ marketing:
Out of compliance?

By on October 8, 2008 in deceptive marketing, ethics, responsible or not?, strategically responsible

I don’t like receiving upsetting letters.

Nobody does.

But here’s an envelope I received in the mail yesterday:

Envelope from Personnel Concepts labor law poster notice+enlarge

Why would I receive a letter from The Compliance Service Department at PCI marked “Important – Open Immediately?”

I didn’t know who PCI was, but I was afraid it may have something to do with our business insurance so I opened the letter posthaste.

Here it is:

Personel Concepts labor law poster notice +enlarge

“Final Notice?”

Okay, that made me nervous. We pay our bills around here, and we pay them on time. What’s happened?

As I read a little further, the knot at the bottom of my stomach began to loosen. We hadn’t screwed up—this was another deceptive marketing trick.

In fact, it was trick I was informed about in late August, when I was contacted by Janet Attard of Business Know How, a 20-year-old company that sells these posters online.

She contacted me because she was fed up with questionable marketing tactics of some of their competitors and thought it would be an interesting topic for The Responsible Marketing Blog.

An excerpt:

Businesses regularly get mail . . . telling them they need to buy or update posters immediately to avoid being fined.

The mail is usually worded to be confusing, but not quite (by a hairline) be false advertising.

For instance, there were some changes voted into law for the FMLA this year (Family Medical Leave Act).

The US Department of Labor put an informational poster on its site, but that is only a temporary poster, and while it’s recommended, it’s not required to post. That’s because the DOL hasn’t finalized or issued the new FMLA posting.

That didn’t stop the sleazy marketers from telling companies they had to buy a new poster with the new FMLA regulations on it.

Janet never named names, but the letter I received from Personnel Concepts yesterday sure seems to fit the bill.

It would appear Personnel Concepts’ goals with this mailing were to:

  1. Create enough uneasiness with the envelope to get someone to open the letter
  2. Create enough uncertainty with the letter to get that person to act
  3. Make the letter and envelope look official enough that it might fool companies into quickly routing the form to accounts payable for immediate payment

There is information in the copy that explains that this a product for sale, and that the same posters are provided by the government for free. But everything else has been deliberately crafted to create fear, uncertainty and doubt—with a goal of tricking someone into paying without thinking first.

We’ve seen this approach before, from vanity scams to domain name renewals—some companies would rather deceive instead of trying to persuade buyers their product is worth the price they seek.

To be fair, Personnel Concepts approach isn’t that unique. Some direct marketers use this approach frequently—because it works.

So, is Personnel Concepts’ marketing out of compliance, or are they just really effective direct marketers?

Comment below to weigh in.

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  • http://123socialmedia.com Brian Crouch

    I agree with you 100%. I am sure you will ever do business with them, and now anybody that reads this, perhaps finding your blog after a search for them, has permanent testimony to their un-trustworthiness.

  • http://www.socializedpr.com/ joel

    It’s corporate America’s version of a Nigerian 419 letter.

  • http://www.ephealy.com/ Ed Healy

    I don’t get as many of these via snail mail as I do via email. I do get them, though. The ones I dislike the most are the ones that appear to be negotiable checks – only if you deposit them, you are signing up for a service of some sort. I consider this a bad business practice and wish it would be squashed.

  • http://www.vanhoosear.com/ Todd Van Hoosear

    Just like the 419 scams, these are clearly deceptive yet obviously effective…

  • http://www.alvalyn.com Alvalyn Lundgren

    I’ve received e-mails of a similar nature that take the approach of a Better Business Bureau complaint against my business (filed by someone I’ve never worked with). With further investigation, it turns out to be bogus. But these marketers are definitely creating fear and then attempting to take advantage of that fear by offering a solution for it.

  • Dalene D.

    My office was scammed by Personnel Concepts about 5 months ago. My boss & I were unaware that this company was not on the up & up. The information & posters we received and paid for from Personnal Concepts were the exact same thing that we could have gotten from the Labor Board for FREE, which I heard on the TV news by a guest from the Better Business Bureau. Personnel Concepts called our office today and I absolutey refused to talk to them.

  • http://www.nickcarnes.com Nick

    When I get letters like this it makes me mad when I find out it is not something important or urgent so it goes in the trash. I don’t even give it consideration. I get a lot at my house and they are mainly car dealerships, but now I have learned to open, scan to the bottom, and trash if it is a scam.

  • Veronica

    I do book keeping for a small business and have received several of these letters from Personnel Concepts regarding the compliance posters. I paid for the initial posters, around $50 I believe, then within a month began receiving more letters telling me the posters I just bought are now out of date and I need to buy more. That’s when I really began to get suspicious and just started throwing the letters out. I just received another one so decided to look it up on the web. My suspicions have now been confirmed and I will not be purchasing posters from them. They do make their letters look very official so you assume you need to pay for it. I believe the product is necessary for business owners, but nice to know there are other means of obtaining them-and for free. Thanks for the post!

  • AmyB

    I kept getting these bills and “final notice” letters as well at a past business. Seemed the receptionist before me fell for it and spent $1000′s of the business money trying to keep up and make sure we had what we were “required” to have. (there are 100′s of these companies out there). So I did a little research, even contacted the Better Business Bureau. As one other person commented, the only place you need to get posters and forms from is your State Labor Department and they are FREE!!!!! Don’t fall for this expensive scam! I had one company call me to tell me that they were going to fine us $800 for not keeping up to date on the posters and forms and I told them I knew they were a scam. They hung up without saying another word. Paranoid?!!!

  • nancy

    We received one of these “final notice” things at our church, and since I am the new treasurer, I dutifully hurried to pay it so we wouldn’t get fined. Then, when they CALLED us to tell us we needed another poster for OSHA compliance and this would cost $100, I started to smell a rat. When I told her I was going to look into this, she said I could call her back at any time to approve the purchase. Well, I did call her back and told her she was deliberately decieving me, that all the posters I needed would be sent free from the state, and beside that, I wasn’t going to spend the Lord’s money on a fraud. She said, “Did you want to cancel the order?” DUHH!

  • Shawn

    I ordered an update for the poster I had previously ordered (I believe it was to cost around $14). I was suspicious about it, but I just wanted them out of my hair, and it wasn’t much money. I sent the order in via snail mail. I ended up receiving over $300 worth of merchandise. According to them, they called to “confirm the order”, and supposedly the boss (whom they spoke with) ordered all the extra stuff. Looking at the list of things they sent me, there’s NO WAY the boss would have ordered or agreed to all that stuff (as most of it has nothing to do with our business). Heck, they sent me a binder about musculoskeletal disorders (WTF?). I don’t know what they said to my boss on the phone when they were “confirming my order”, but it had to be incredibly deceptive. They managed to tack on a list of 20 extra things. I’m sure they acted like they were just confirming an order I had already placed. I don’t think they could have possibly pulled off such a bait and switch without flat out lying to my boss. I called them and yelled at them for being scamsters, then I told them we were canceling the payment, and if they wanted their stuff back, they would have to provide me with a shipping label (which they emailed me). These guys are first class scumbags.

  • Kirstyn

    I just received this letter in the mail and my gut told me to do some research before sending a check off… thank you all so much for the postings and confirming what I’ve always believed… listen to your instincts!

  • Terry Reinhart

    A trick we used to use to get even with entities like this:

    If they have an 800 number, get as many people as you can, call their 800 number….continually.

    They have to pay for each call they receive on their 800 line.

    terrein

  • Peter

    Im a business owner with 2 locations I was first approached by personnel concepts about 2 years ago. At first I thought it was a scam too but I thought I would give them a try. 6 months ago 1 of my workers got a pretty serious injury and we had OSHA inspectors here immidiatly. They told me if it wasnt for my saftey posters on the wall they would have to fine me $1000 for each of the 3 changes not placed on my poster and for “not properly addressing health and saftey in the work place”.
    I am soo greatful I spent $200 to keep my butt out of trouble so now I just leave all that updating to them, They charge about a total of $300 a year for all my stuff and to a small biz owner like me its cheaper than having to deal with a lawyer.

  • http://www.baisystems.net Serene Ballew

    I agree with Terry Reinhart. We should call their 800 number and hope that will cost them their business. Start calling 800-333-3795!

  • Greg Rivers

    Honestly, call thier 800 to get even??? I do also agree they have some pretty confusing marketing but I also never realized how many laws change throughout the year. I took it upon myself to cancel personnel concepts service and do it myself for a year. Im in the construction industry and we have many other diffrent laws that only apply to that industry. There are too many changes and things I had to keep up on that I just call them up and let them deal with all the notices.
    Many people dont realize these posters are required by law, I know this because my brother works for an OSHA saftey inspection company and he fines business owners all the time.

  • Brian Rausch

    Im a GM for a company with over 130 locations across the us. OSHA and Labor Law Posters are part of strict audit criteria. If I don’t have my facility updated with the most current posters I’m in trouble. The company actually trains it’s GM’s on matters such as these explaining how many times they have been fined by OSHA for not having these postings or not having the proper programs in place to be compliant.

    I’d bet most posters here are small business owners that have little or no knowledge of the severity of not having this information posted. Take the time to educate yourself and might find your self worrying about more important matters than a piece of mail looking like the government. They disclose who they are, and they tell you the information is free from the government so how deceptive could they be?

  • Office Manager, Large Non-Profit

    I’ve received the letter also. They do a good job of looking official, but we too pay our bills on time and NEVER get final notices unless it’s a scam of some kind. I usually walk away from companies forcing me into a rush decision because it never ends up benefitting our organization.

    I agree with Brian Rauch on one point though. A jazzy design and creating a sense of urgency does not a scam make. They offer a poster that may or may not be required. Luckily there are smart people out there that recognize PCI for what they are. That’s the glory of being free in America. The Gov’t can protect you from terrorism, but not your own stupidity…that is a freedom that many enjoy, unfortunately it is not always blissful.

  • Terry Reinhart

    Start forwarding the “letters” to USPS, if they get enough complaints, they’ll do an inquiry, which puts a scare into cons like this.

  • Logan Linares

    Great point “Office Manager.” The general public is pretty stupid. It’s always somebody’s fault your stupid when it gets brought to your attention. No one likes to hear it but when your a business owner you have responsibilities. No one is going to teach you, you have to learn it on your own and if getting fined is the way you learn so be it.

    Since we are on the topic of stupidity and commonsense I’d like to point out the “Janet Attard” comment. Janet is a competitor of Personnel Concepts. Why would anybody put value into another competitors devaluing comments about another competitor? There are several scammers out there that will tell you their competitors do bad things and they don’t but several times they turn out to be just as bad as their competitors. Can someone tell me how one could take her comment with more than a grain of salt?

  • J

    Thanks for submitting this! I received this letter today from Personnel Concepts. I was unsure about it and googled it and found your blog.

  • http://None Liz K Eisen

    Got mine today re: Federal Labor Law Poster.

    First tip off (among many): my name was followed by “or Current Occupant”.

    Can this group get away with what they are doing by what is written in the final paragraphs on side 2 of their document, particularly the sentence: “Notices are available free from the government; we do not sell or provide individual government posters.” ?

    Just curious. Liz

  • Daniel Yoldi

    What’s written on the back means nothing. It’s there for the customers satisfaction of knowing they are being told they can. It’s more than likely a tactic to fend off the complainers such as the ones in this blog. The truth of the matter is that you can get the posters from the government for free and it’s illegal to sell individual posters available from the government. However they are not doing that. They are taking several posters and combining them into one poster which is not the same. Of course that is over simplifying the matter but the black and white of the law says they are doing nothing wrong. It’s the public’s common stupidity we are talking about and as Office Manager stated being free to choose to be stupid is not always blissful

    Take for example K&N filters…if your familiar with cars. The filter is claimed to be American Made when the fact of the matter is the filters aren’t even produced here in the US. They’re manufactured overseas and then shipped here . Though according to US laws because it was oiled, shrink wrapped and boxed here it’s American made. Most people have no clue about the in’s and out’s of the law and are often scammed by some of the largest most respectful companies all the time but since it doesn’t make them feel stupid they deal with it.

    I’m an HR manager and I discovered Personnel Concepts several years ago. I received their “Final Notice” and remember being annoyed by the message but after I made a purchase with them I soon forgot about their crummy marketing scheme. They offer several other products and not just posters. It wasn’t until recently when we received a final notice that I realized the power of the internet and perhaps the people that are on it.

  • Tammy

    I just received this letter today. I have been checking with every letter that comes through our mail that is from a company that I am not familiar with and found this site by doing so with this letter. THANK YOU!!!
    I have so many scam marketing and posts out there from companys that have been sending my company junk mail! I’m glad that I have started doing this.
    Thanks again!!!

  • Josette

    I don’t get it. Where’s the SCAM? Everyone keeps talking about a SCAM and then there are those that say it’s required. Does anyone have authority in this blog or are they people that are speaking to hear themselves?

  • http://www.outsourcemarketing.com Patrick Byers

    Josette,

    Good questions. The key thing here is their marketing approach — the fact they are leading with trickery instead of the products benefits and their company’s differences that matter.

    “Speaking to hear themselves?” Really? Everyone that comments here has the authority to speak. They have experienced Personnel Concepts marketing first hand, and they know exactly how it made them feel.

  • Mike

    Definition

    SCAM: A fraudulent deal. Business plan intended to defraud; To defraud or embezzle.

    If it’s trickery why do they disclose who they are? Why do they tell you it’s free? Why do they provide an 800 number to call them and verify information? Does the government not require this information to be posted in your business.

    Because someone feels uncomfortable it’s a scam? I don’t get it either. I don’t like getting bills and then having to pay for them but I do it anyways because I’m required to pay.

  • Kim

    Some of people on this blog are ridiculous. Personnel Concepts is a $40mm company apart of Brady a BILLION DOLLAR public company. Go ahead and call their 800 number and report them to whoever. Obviously investors don’t mind. Personnel Concepts has been around for over 20 years and been doing the same kind of business since then. If it was a scam I’m sure they would of been shut down by now and wall street would have nothing to do with it. A blog like this gets posted and everyone feels educated but blogs like this just show the ignorance and laziness of people not to really find out the truth of the matter. Why is it everyone lives their lives to their highest level of mediocrity?

  • http://www.outsourcemarketing.com Patrick Byers

    Thank you for your candor, Kim.

    So what you are saying then is, “might makes right” and if they aren’t shut down it’s not questionable marketing?

    This is a discussion about the marketing tactics being used. It’s about Responsible Marketing, not irresponsible marketing that makes people angry but is okay because laws aren’t being broken or a company is large.

    While their company may be legit, it’s the opinion of the readers of this blog that their marketing IS deceptive.

    Your argument that this company is part of a billion dollar public company only makes the offense worse. I can see this from a small, scrappy company just trying to make it, but the bigger the company, the LESS excuses they can make.

    Since when have public companies been guilt-free? A large part of the responsibility for our current economic crisis is due to the under-regulated excesses of public companies.

    Your question “Why is it everyone lives their lives to their highest level of mediocrity?” is incredibly ironic.

    This blog (and it’s author, yours truly) and the people commenting on it expect companies to live to a HIGHER standard.

    If you believe that the the blind acceptance of marketing tactics like this is okay, who’s really being mediocre, Kim?

  • Kim

    Thank you Pat for your response.

    I’m not suggesting that simply because a company is a public corporation makes them legit. What I am saying is Personnel Concepts has been around for over 20 years and the their tactics have been known just as long. If there was something wrong with there tactics (morally, ethically, or legally) you would think the negative press would cause them to loose…right? A public company does not make you guilt free but it does mean your business is an open book.

    You cite Janet Attard’s comment and it could lead one to believe Personnel Concepts a great example of the problem when I have yet to hear or see some of the tactics mention. I personally have received several mailings from Personnel Concepts including the infamous Final Notice. Though the mention of selling products people do not need I so far have found untrue. I also find interesting another poster mentions Janet Attard’s devaluing comment about another competitor. Business Know How has used the same tactics of Final Notice and officialness that scares people. Whether she uses it now…I’m not sure. However, reading some other blogs and press out there she sure likes to toot her horn like she is a role model of perfection.

    Not to get off target but to get back to your point. This is about Responsible marketing and what appears to be deceptive. I’m sorry but I can’t totally agree that the point of view that it’s irresponsible marketing on behalf of Personnel Concepts. Everything that one person needs to determine the validity of their Final Notice is present on the mailer and all they have to do is read. Since when is the irresponsibility of the consumer the responsibility of the advertiser. As one poster said choosing to be uninformed is your choice but feeling stupid isn’t always blissful.

    So to wrap this up even though every bit of information you would need is given to you to make an educated conclusion about the legitimacy of a notice, because it LOOKS scary it means it’s deceptive. I’m sorry I really don’t buy that. You mention the posters here feel it’s deceptive but I see some that feel it’s not so deceptive. What kinds of businesses do these posters have and how large is there business. I have yet to see a business of some type of size or stature complain…or is it just me?

  • Lisa

    I finally figured this out too and I work at a church! The only posters you are required to post are sent to you by the government for FREE!

  • Carl

    I am sorry, but I for one will not spend money on something that is available for free and unlike the companies that have money to throw away, I am not one of them. This is not being money smart.

  • George R. Sutterman

    Its scary to even think some of these people who run a business just totally ignore things like this. If you run a business please just do your due diligence don’t be so cheap and at least keep those posters current. Small business owner that think they are above the law will have a very rude awakening when they do get an inspection done. Trust me Im someone who knows how costly these OSHA inspections are, lets just say that “you can be fined” thing is oh so very true. You know the government gives these free but don’t think for a second they are going to call and remind you one of your posters needs to be updated until the day the labor commission come in then they let you know how many updates are missing by way of fines and written warnings. Its a wise choice to at least get a new poster once a year.

  • http://PersonnelConcepts Becky

    Several things are WWWAAAYYYY out of line here. First of all, their entire presentation is modeled after official government postings, which makes it look ‘official’. Secondly, ANY of the posters that they have for sale are usually available from your state department of labor for FREE. Third, the letter itself is actually a SOLICITATION/SALES PITCH, but your first impression is that you or your company are out of compliance and possibly liable for a $17,000 fine. This typs of mailing must state clearly and visibly somewhere in the body that it is a solicitation, and not an official government document. Finally, when you call the company – be careful and listen for the ‘beep’ which means your call is being recorded. However, you are not informed that the call is being recorded, which is another violation. This company is using visual cues and language that are basically strong-arm tactics. I’ve already complained to my state department of consumer protection, the FCC and the US Department of Justice. Businesses like this need to be put out of business.

  • Debbie

    I realize not everybody has time to make sure they are up to date with their posters and if you are one of those companies, order away. However, I do have a problem with my “FINAL NOTICE” as it was actually the FIRST NOTICE I had ever received from them….so that is a “little” bit deceptive and sneaky. When I called to have our self insured government agency taken off the mailing list, the man on the telephone was extremely professional and courteous.

  • Margo

    I just put junk mail in the envelope and send it back postage due.

  • Randy

    I just listened to a meassage from these people telling me they want to talk to me about employee #1529596. Being a retired State cop I was suspicious about the call, googled their name and found this blog site. You all have confirmed my suspicions. I can’t wait for Ginger to return my call.

  • http://www.momproject.org Small Nonprofit President

    I am the president of a very small nonprofit. We don’t even have a brick and morter and was very confused as to why I needed to purchase signs. Thanks for the clarification.

  • http://www.w1kas.net Ken Stein

    haha, I just got this too! scared me because my car insurance bill fell through the bottom of my mailbox last month… I don’t even own a company, who are these people kidding?

    if they had only sent me a postage-paid business reply mail envelope… I’d be mailing it back taped to a cement block.

  • Property Manager

    Thanks for posting these!!! Just saved us a bunch of money and a headache. Very deceptive. Sent it to our apartment manager and he thought he was in trouble. I recognized what this was immediately. This site confirmed my suspicions.

  • John

    Hmm…I’m a little confused. I understand the deceptiveness part but I was just reading another marketing blog and I guess the former owner commented about the same piece that everyone else is commenting about. He claims a lot of the copy comes directly from federal and state laws that have been published as public information. So the fact remains I still need to get my posters but according to most here I should not worry. Some people say I can get it for free and they all post the federal dol website but what about state posters….not every state is the same. Does the government inform you at all when chances occur.

    Marketing Blog: http://eyeingmarketing.com/2008/02/26/personnel-concepts-direct-mail-piece.aspx

  • Chica

    These posters ARE required by law but they are free of charge from the government. You do not have to pay for them. If you do, it’s a scam.

  • your mom

    Im currently work 4 personnel concepts. I do believe that it is the law 2 post your OSHA and your state and federal. However the reason our customers get so upset is because they send out constant mailers, but wouldnt you want to know if there is a change to the law?? Do you as a business owner really do research as to when the federal laws change? Yeah u can get the postings for free but do you have the time? Would you even know where to look?? I laugh when people say “we dont need osha” oh yeah?? What if 1 of your employees hurt themselves then turnes around and called osha on your business, then they come out and inspect you and your not compliant then you get fined…

  • http://www.twitter.com/fontbandit fontbandit

    I got one of these in the mail today. Deceptive. Wrong message. Misdirected at a businesses like mine. Do not do business with Personnel Concepts.

  • nunnya

    These people are scumbags that know they are being deceptive. That’s probably why a company from California has a return address in Canada? Not to mention the name and information they used as my company name was incorrect mash of names and addresses from my past jobs, company names, and addresses. To me, this is the stuff that should be illegal. PERIOD! Off to the better business bureau…

  • nunnya

    Ha, here’s the quoate from the BBB…

    Our opinion of what this rating means:
    We strongly question the company’s reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law’s licensing or registration requirements, their complaints contain especially serious allegations, or the company’s industry is known for its fraudulent business practices.

  • Jeff Largent

    The BBB is a paid service and is just as corrupt as any other agency. I’ve had my fair share of BBB complaints and what I have learned is they mean nothing. I can go over to my local BBB office and stroke whoever is in charge and get my rating from a C changed to a A overnight if I wanted to. The statement above is a generic statement by the BBB and not directed towards them but a blanket statement and any combination of those statements or only one actually pertains to that company. Some people don’t have the intuition to make reasonable comments.

  • Deb

    Being relative new to HR, this ‘letter’ was passed on to me. I knew there were changes and wanted to be up to date. So, I ordered 5 sets of posters at approx. $29.95 ea. After a few weeks, I got a call from their rep saying he wanted to confirm my order and then proceeded to tell me the additonal charges for each section of the poster. Final tally-almost $800 for the 5 sets. I immediately told him to cancel the order. I later had voice mail from him asking me to contact him to complete my order. I called-got vm-left message that I wanted the order canceled.

    I later got the posters, laminated from our state Chamber of Commerce for a tiny fraction of what PC was going to charge.

  • Justin

    First off, I used to work for Personnel concepts, and they do not scam ANYBODY into buying stuff. I always let my customers know that too. If you recieve letters and you dont wanna buy, DONT BUY!! Have you people been on the OSHA or DOL website?? It is confusing! Personnel Concepts benefits large or small business who do not have time to research, research, research and so PC provides them with information they need in order to notify their employees. Many large corporations order with Personnel Concepts such as Subway, McDonalds, GAP, and so on. How are you seriously going to find out what exactly needs to be addressed/posted? Every state has different laws/requirements. Employees need to be notified of their rights anyhow. Personnel concepts provides it in writing for you. Bottom line is, If you dont wanna buy, dont buy. They are a legit company. You of all people should know, business is business. Their products are beneficial to most, of it isn’t to you, then move right along.

  • Amanda

    i hate them!!!!!!!!!!!!!!!!!! i called to place an order for ONE poster and the gentlemen kept asking me questions and was telling me if i dont buy stuff, i’ll get fined!! i paid with my credit card and declined everything he was trying to sell me and 2 weeks later i recieved a bunch of crap i did not order to authorize!! over $300 was charged to my credit card!!!!! i called and cussed them out, they apologized but took a month for a full refund. ridiculous!!

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