Feb 8, 2009
The bottom line is this:
Regardless of the fact that GDS's products (publishing or events) may be beneficial to some clients, the sales tactics employed are clearly unethical and some illegal.
The FTC has regulations regarding cold calling prospects in order to make a sale:
- The salesperson must identify their company (not a company alias but the specific company or publication), that it is in fact a sales call and what they intend to sell.
- A salesperson cannot lie on the phone (ie. say someone reccomended them who did not, that they are working with someone who has not yet officially agreed to be a part of the project, that it isn't a sales call, saying people are attending an event or sponsors are confirmed that have not committed yet, that there are only two positions available when there are not etc. etc.) Also, you cannot say you are a consultant when you are not, if someone asks what GDS does, you must say "we are a publishing and events company"
- A salesperson cannot misrepresent what they intend to sell (falsifying content, circulation, participants, sponsors, contributors, etc. to make it seem like a better fit to the prospect)
- If someone asks not to be contacted, they must be put on a do not call list, and it is illegal to contact them again (GDS does not have a do not call list, in fact, they do not even have any CRM or Sales/Contact Management system in use.
- A do-not call list is required by law, and it is required by law that it is enforced (again, GDS does not have a do not call list)
You cannot lie to get someone's cell phone number. You cannot call their homes and lie to their familes. You cannot call their work and lie to their employees. Saying you are someone you are not on the phone to get someones private information is fraud. It is a felony, and though the company would get fined and charged with other offenses, the salesperson would be charged in this case and could potentially face jail time.
Not following these rules and regulations is not only unethical, but against the law. So the question is not whether GDS's products are good or bad, but if you want to work with a company that has no problem breaking the law and taking part in unethical activity.
This is no blame to the employees, many of whom are fresh out of college and have no sales experience. I give them the benefit of the doubt because of their naivity. The blame falls on an organization who not only encourages, but insists on unethical practices and misleading clients. In fact, if a salesperson refuses to follow suit, they will surely be terminated.
GDS will argue, in an attempt to win their employees support, that this is in fact how business is conducted in sales and that everybody does it. This is not true. Certaintly they are not the only ones using unethical tactics, but that by no means makes it right, nor would this argument hold any weight in the court of law.
They should focus on training sales staff to become better salespeople instead of better liars. Almost anyone can lie, not everyone can sell.
Clearly GDS is a companay that is around for the quick buck. Companies looking to grow and withstand time do not operate like this. Eventually, they will face legal consequences and be shut down, but the people at the top (ie. chairman, ceo) will still walk away with their pockets full. My sympathy is for the employees who are being strung along, who are being fed a fake dream, who will leave with nothing but a stain on thier resumes which wont count for anything in the world of real business.
I encourage employees to take this information to heart, do not take my word for it, reaserch these laws and regulations for yourself. And ask yourself: Is this something I want to be a part of? Is it something I want to tarnish my future with? Is it something I want to go down with? Do I want to face these charges when the law eventually steps in? Everyone is accountable for thier actions and I can assure you that management will not be extending a hand when it all falls down.
There is currently a case being built against GDS, surely they can charge them with a number of things right now, but time is being spent in order to shut them down permanently and prosecute them to the full extent of the law. Walk away now, before you can't walk away at all.