Disclosure of deceptive pricing to customers - legal risk to me
I have been working for a former employer as an independent rep. for about 8 mos. I have become very uncomfortable with some of their pricing approaches to my customers, primarily claiming a higher cost threshold than actually exists which they then pay a % of of to my customers. Example: instead of paying 50% of actual net proceeds they want to claim they're receiving half that and then pay 50% of 50% (basically a 25% of net proceeds payment to customers).
My concern is that I work with these customers on other projects and feel that representing this deceptive pricing practice is not only unethical but also puts my credibility at risk in the future.
There have been a number of other unethical financial matters over the years that have resulted in my former employer keeping money that should have been paid to customers - which I lobbied against but lost out in the end.
If I were to sever relationship my with this company and disclose this decitful information to my customers - would I be at risk for litigation from my old company?
Answers (1)
Whether you are at risk of litigation is different from whether you can be successfully sued. Your old company may choose to sue you for such disclosures, even if they don't have a leg to stand on. The real question is whether they would be successful in suing you. I cannot give you a thorough answer without knowing more of the facts.
The facts as you state them raise several complicated issues. First exactly how 'deceitful' are the pricing schemes? Depending on whether they range from mere puffing to outright fraud, you may have the ability to disclose the information without being liable. Were you involved with the deceit? Are there state or federal regulations being violated by your employer's behavior? Finally, how was the money retained, and were any of the customers governmental in nature?
You may be able to disclose the information; however, depending on the answers to the above questions (and many others), I would advise you to disclose the information to the customers directly, OR to a law enforcement agency, OR to send a direct letter to the owner/board of directors of your company.
If you would like to discuss this matter directly, feel free to contact me at the below address or telephone number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585
CEzold@Ezoldlaw.com
posted by Christopher Ezold | Sep 24, 2003 2:13 PM [EST]
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