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Report: #409854

Complaint Review: Creative Memories - St Cloud Minnesota

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  • Reported By: Plattsburgh New York
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  • Creative Memories 3001 Clearwater Rd St Cloud, Minnesota U.S.A.

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BEWARE of Creative Memories Consultant Agreement. They have a clause which states you cannot sell Creative Memories products once you are no longer a consultant....even if you live to be 100!

As a mom trying to make some extra money, I signed up as a Creative Memories Consultant. No one EVER reviewed the contract with me or pointed out that I should keep my inventory low in the event I was no longer a consultant, I would have to keep my inventory.

I found living in a rural area made it very difficult to sell Creative Memories products. I was hoping things would change but they did not. Curious how well their "consultant finder" was working, I typed my neighbors address into it. My name was not listed and the names that did came up were located 30-40 miles away. When I contacted Creative Memories I was basically told I wouldn't be listed unless I sold more???? How was I suppose to sell more when the company is sending my potential customers out of my area.

Well, I continued to plug along, buying extra inventory to meet my minimum purchase requirements - oh ya....at the time, I had to purchase $500 every three months plus pay shipping etc. Needless to say, my inventory grew. The problem got even worse when new catalogs came out and items had been discontinued and weren't listed anymore. Oh Great!

It finally got to the point where my family needed me more than I needed the little bit of extra money so I had to give up the business. I had about $5,000 in products and consultant supplies. Boy did I find out this was a BIG MISTAKE!!!

After I was no longer a consultant, I contacted Creative Memories about my situation. They would only take back items that had been purchased during the previous 12 months and they would charge a 10% restocking fee and shipping. Well, that left out much of the merchandise because I had 3 years worth of inventory. Oh well, I thought, I'll get rid of it somewhere.

About 2 years ago I started selling on eBay and thought wow, I can finally get rid of this Creative Memories inventory and get some of my money back. Like others...I received a letter threatening to sue me for $5,000 if I did not remove the listings immediately. I removed them as I was already $5,000 in debt thanks to Creative Memories.

I find it pretty sad that a company which has made millions of dollars promoting family and memories etc. has left many families with a financial burden due to their greediness. I hope the founders of Creative Memories take a look at their contract and help ex-consultants free themselves of the financial burden they have because of excess Creative Memories inventory.

How much money do you need Rhonda????

Michelle
Plattsburgh, New York
U.S.A.

This report was posted on Ripoff Report on 01/08/2009 08:10 PM and is a permanent record located here: https://www.ripoffreport.com/reports/creative-memories/st-cloud-minnesota-56302-1839/creative-memories-creative-memories-threatens-ex-consultants-for-selling-products-to-reco-409854. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
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#3 UPDATE Employee

On the agreement

AUTHOR: waryconsum11 - (United States of America)

POSTED: Thursday, September 13, 2012

When you sign up as a consultant with Creative Memories you are required to either initial by or (if on a computer) check a box by a statement that you have read and agree to the terms and conditions of the policies of the company.  If you checked that box (which you would have had to in order to complete the application) then you agreed to not sell product after terminating your position as a consultant. 

You must be at least 18 years of age to sign up as a consult with this company, and being such should be able to understand the terms of a contract.  The agreement clearly states that it is direct violation of company policy to sell the products online, in a store front, or at a flee market/yard sale.

It is not the fault of the company or certainly the co-founder that a grown woman did not actaully read the agreement she was signing.

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#2

Don't Worry - Creative Memories are Bullies on EBAY

AUTHOR: snettleh - (USA)

POSTED: Friday, August 14, 2009

 I am in a similar situation.  I was a Creative Memories consultant YEARS ago.  I have a huge amount of stock.  As you know they really bully you into buying way more than the average consultant can sell, especially when all the new scrapbooking stores started opening.
  I tried to sell some of the stock on ebay and was quickly shut down and had my account on ebay frozen, thanks to Creative Memories claiming I had a trademark violation.  With no way to respond other than contacting Creative Memories.  Obviously Creative Memories continued with their threats and bullying tactics.
  I live in Colorado and did a little research.  I am not a lawyer so I'm sure there are some nuances that I don't know, but the basic determination is this.
  The state of Colorado HATES non-compete clauses.  The paragraph in the consultant agreement is basically a non-compete clause.  Colorado rarely upholds con-compete clauses except in some very specific exceptions that are narrowly interpreted.  The only exception that I could find that even comes close to this clause would be the sale of business assets.  If Creative Memories considers their "products" their "business assets" then 1) there is still a situation specific time limitation of about 5 years in Colorado, and 2) it opens up a whole set of issues that Creative Memories probably doesn't want to go into if they started classifying products as business assets.  That would imply that every person who purchased Creative Memories products now own Creative Memories business assets and therefore part of the company?
  As to the mediation clauses and you have to complain in Minn., once the relationship is terminated it is difficult to make the argument that that clause still is in effect (even though Creative Memories probably would make that argument)
  I'm going to take my chances, I'm just mad that EBAY won't let you continue, so I'll have to work around their issues.
   I agree with Michelle - how much money can Rhonda possibly want?  Gone are the days when she promoted family and friendship as part of her sales pitch.

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#1 UPDATE EX-employee responds

Don't be intimidated by contracts that are NOT LEGAL in the first place!!

AUTHOR: Anonymous - (U.S.A.)

POSTED: Sunday, June 14, 2009

I have dealt with Creative Memories threats in the past. And was able to get past them easily via my lawyer. Here is what I learned...

There is a limit to what a company can hold you to when it comes to any "non-compete" contract. Any contract which tries to bar you from selling said product for the rest of your lifetime will NOT hold up in any court.

First, find out when you deactivated. Then, find out the statute of limitations in your state. (Most are no longer than 6 years). Add that to your deactivation date and that's when you can legally sell on eBay or Craigslist.

Before that time, you can always have your husband or adult family member "sell" your products for you - it's perfectly legal.

Be careful that you honor their copyrights when listing you products online - that's a whole separate lawsuit that they can sue you over. (ie. don't use their pictures off the internet - take your own).

Good luck! I hope this helps others!!

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