"MARY KAY is a business model studied by Havard Business College..." The Mary Kay Corporation was studied by a particular…
The truth about quitting Mary Kay and what happens to former consultants and their customers.
1. Is it true that once a Mary Kay beauty consultant terminates her contract, she is no longer allowed to sell Mary Kay Cosmetics?
No. That is not true. Nothing in the beauty consultant agreement indicates that a former consultant is prohibited from selling any Mary Kay products she may have on hand. She has purchased those products from the company, and can do with them as she sees fit.
2. Is it true that after a beauty consultant terminates her contract, she is no longer allowed to call herself a Mary Kay beauty consultant?
No. That is not true. Mary Kay makes it very clear that consultants are self-employed and they direct all of their own activities. Whether or not they still have a valid contract with Mary Kay and may purchase products from Mary Kay does not matter. What matters is that a woman can be a “consultant” selling Mary Kay products if she chooses. She chooses her own title, and if that title is “Mary Kay beauty consultant” there is really nothing Mary Kay can do about it. She is, in fact, consulting regarding Mary Kay products, so no misrepresentation has occurred.
3. Is it true that once a consultant terminates her agreement, she gives up all rights to her customer base?
No! Just the opposite. The Mary Kay consultant agreement specifically says that the names and addresses of the customers are the “property” of the consultant.
“Customer names and addresses furnished by Beauty Consultant to Company in connection with optional programs shall remain the sole property of Beauty Consultant and will not be used by Company or disclosed by Company to other parties without Beauty Consultant’s permission, except as may be required by law. “
As you can see, the company is not allowed to use or disclose this information without the consultant’s consent. Termination of the beauty consultant agreement does not void this clause.
Customer information should not be taken and used without a former consultant’s permission. And don’t believe your sales director when she says that you must turn over your customer list to her. You have the right to continue you relationships with your customers as long as you choose and without regard to whether or not you still have a contract with Mary Kay.