James K Weigold 1983
Consumer Awareness and Capitalism At Its Finest
DISCLOSURE:
GOOD BUSINESS, AND GOOD FOR BUSINESS
What Is Disclosure?
Consumers who make purchases in their homes from sales representatives need information about what they buy and about the companies from which they make purchases. They should have as much information as possible about the experience of the company. They should be informed about product components and workmanship. They should be able to count on quality service during and after the purchase. And they should get verbal promises in writing.
Right now, in-home consumers do not have all of this information. With Disclosure, they would.
Disclosure refers to the disclosure of information to consumers by companies that sell products and services in the home. The concept was created by Jim Weigold, who owns We Care, a home remodeling company that serves customers in the Philadelphia area and has been in the business for more than 30 years. He has witnessed firsthand how vulnerable consumers are to unscrupulous contractors, those who get into business without adequate experience or financial resources, who promise anything to close a sale, who charge the maximum and deliver the minimum, and who disappear after the bill is paid.
Jim decided that something had to be done. He realized that by giving consumers more information they would be in a better position to differentiate among companies and decide whether or not to make a purchase. So he created the Open Disclosure Organization for companies that voluntarily document in writing information about themselves and their products and services. Consumers can then use this information to compare providers of replacement windows, roofing, painting, carpeting, or any goods and services sold through in-home visits. They know how long the business has been in existence, its assets, its insurance limits, and whether workers are employees or subcontractors. Most important, they can see what percentage of a business' work comes from repeat or referred clients - a clear indication of customer satisfaction. And everything is verified with the owner's signature and photo ID.
Open Disclosure Organization members also support content labeling on manufactured products, similar to the legally required labels found on mattresses, pillows, etc. With content labeling, consumers can easily see what gauge of steel is in their new door and if its handles are plated or solid brass. They know whether windows contain all new materials, the type of glass, and what kinds of seals are used. Without labeling, they can't be sure.
With the right information, consumers can make comparisons that go far beyond cost estimates. They will understand how experienced a firm is, who will perform the services or install the goods, and how satisfied others have been with a company's work. And, if a firm does not disclose, that tells consumers something as well.
Disclosure benefits those on both sides of the sale. It serves as a valuable screening device for consumers and gives them a more informed basis for comparing estimates. Disclosure reassures people that they are doing business with a company that has nothing to hide, that puts its promises in writing and guarantees them with the owner's signature. For companies, disclosure provides credibility with consumers and separates their firm from competitors who don't disclose.
Let's take the home improvement industry as an example. In Philadelphia, individuals can enter the industry with nothing more than a business card - no prior experience, no financial resources, and no guarantee that they will be around for any length of time. Consumers won't know how long a contractor has been in business unless they ask, and even then, nothing is in writing.
At present, consumers have three business days to rescind a signed sales agreement, a regulation instituted by the Federal Trade Commission to give them time to verify businesses' claims. Disclosure firms, however, believe that this regulation doesn't go far enough. Three days is too little time for some consumers, particularly those who are elderly or physically disabled, to verify claims without the information provided by disclosure.
Without disclosure, consumers are vulnerable to the practices of incompetent companies, unethical salespeople, misrepresented products, and slipshod service. With disclosure, consumers have detailed, written information about their specific job and about the company doing that job. The owner's signature serves as a guarantee that the statements are correct; if they are not, the owner is liable for fraud.
Open Disclosure Organization member companies want disclosure to become a requirement of all companies making in-home sales. Until that happens, they voluntarily provide details on their experience, finances, employees, and sources of business to prospective customers in writing, verified by their owners' signatures and photo ID. By doing so, they protect consumers and themselves from incompetent companies, and raise the performance standard among businesses doing in-home sales.