Wednesday, January 2, 2008

A REMINDER FOR HOME DEPOT

It would seem Home Depot needs to dust off their virtual copy of company ethics, or at least read it a couple more times, because after I read through it, there seem to be some glaring contradictions between the document and reality. From what I can tell, they did not run this contest in compliance with the law. Do you have any information to say otherwise? Let's take a look at what Home Depot itself says (emphasis added):

"The Home Depot has a strong commitment to ethics and integrity, and our core values define the means by which we do business. Each day we are challenged to be fair and consistent, to be compliant with the laws that govern our activities, and to notify others when something needs to be corrected."
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Doing the right thing while performing your job may not always seem the easiest choice or the most expedient way, but it is always the only choice and the only way."
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"It is our mission to be a good corporate citizen and to serve each community in which The Home Depot conducts business.
We will obey the laws and respect the customs of each community and will encourage participation and involvement in community affairs"
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It is everyone’s responsibility to comply with all of the laws that govern The Home Depot’s activities, and to adhere to our Corporate Compliance Policies, Standard Operating Procedures (SOPs), and other Company standards at all times."
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Each Director, Officer and Associate should always deal fairly with the Company’s customers, suppliers, competitors and Associates. None of us should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair practice."
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Do not use or copy a trademark, copyrighted material, trade secret or patented invention of another"
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Violations of the law, this Policy or any of our Corporate Compliance Policies may expose Directors, Officers, Associates and the Company to civil and criminal liability."
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Anyone who violates the Company’s policies is subject to discipline up to and including termination. These disciplinary measures apply equally to those who condone improper or illegal conduct by another Associate. Associates may report Policy violations or other concerns to their Manager, the Corporate Compliance Team or anonymously, through the Company’s AwareLine at (800) 286-4909."
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"The Company will not tolerate any retaliation or threats of retaliation against anyone that reports in good faith a violation or suspected violation of the law, any Company Policy or the Business Code of Conduct and Ethics."

And to put this in perspective, I'll repeat some of what's in the post below, entitled "Food For Thought". In it I examine one perspective on contest law. Remember, according to Home Depot's own rules, any entry that contains copyrighted material should be disqualified, but they allowed it to be re-edited instead:

... Certainly, the rules should include protections for the promotion sponsor, such as limitations on the number of entries permitted and the manner in which entries may be submitted (e.g., precluding bulk-mail entries). The promotion rules should be written carefully, because the sponsor will be legally bound to adhere to them once the promotion begins.
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Eligibility should also be conditioned on compliance with the Official Rules.
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Perhaps the most important thing to remember is that the creativity and low-cost of the Internet as a medium should not be an excuse to avoid legal compliance. If anything, it should up the ante, as the reach of the Internet is incredibly broad, and legal compliance becomes all the more important when one’s promotional campaign may be virally emailed all across cyberspace.

A NEW "REALITY SHOW"

If you haven't done so already, be sure to scroll down to read all the posts regarding Home Depot's $25,000 YouTube Gift Card contest, and how they allowed the winning video to re-edit AFTER the contest was over, just to avoid being disqualified.

While the winning video was cute and catchy... a Home Depot marketer's dream... the question is: How far can a company legally go to keep their favorite a winner? Can they bend the rules? Make special rules? Or are they required, as I presume, to follow their Official Rules to the letter? (NOTE: Home Depot has since deleted their rules from the YouTube site, but you can read them here if you scroll down)

Home Depot disqualified another video (the Bork family) for rules violation. As Home Depot stated, they are "legally obligated to follow the rules", in fairness to the 260+ other entrants. When they then allowed an entrant to re-edit their video to avoid being disqualified, AFTER the contest was over, well... many people had some strong opinions. Here are some things that some of the 260+ other entrants have e-mailed me, after the official winner was announced. It's a tale of how this affected many of the people who worked hard for their chance to win:

"This whole thing upset me...I feel like me and my family wasted our time now...I feel like this contest was fake."

"Wow, that is unbelievable, can they legally let that happen, aren't they violating their own rules??!?!"

"I noticed they have shut down the message board..tells me they want it all to go away."

"I, too am appalled at HD's behavior. I was able to read the main discussion thread this morning before all the discussions were removed completely. Do you know if HD has done anything beyond issuing the lame excuse?"

"I was reading up on all the controversy today and HD's lame response/excuse...then they suddenly took down all the discussion threads! Very, very poor showing by HD."

"This was a big HD blunder !"

"Excuse me. My head just exploded."
I've also received a few comments in support of Home Depot, like these:
"I think it's a great video. I think it's great that companies like Home Depot have these contests and pay 20K. I think it's great that HD saw the great video - and allowed the video makers to make it 100% legal"

"I don't really care about 3 or 4 Home Depot employees missing some copywrited material in a home movie. Sure, maybe the family that won may not have been the most needy, but the movie was cute and fun."
Regarding that last quote, you can be sure there were more than 3 or 4 employees involved in this contest, to comply with regulations intended to ensure a legally run contest... I get the feeling that there were a few people involved that were in way over their head in this contest, then others were forced to bury this as quickly and quietly as possible. It didn't quite work out as they had hoped, I would imagine. Do you have a comment? Let us know.