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  1. #1
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    Etoys and KB Toys

    Remember that one?

    - 100% Commission reversal
    - Companies go into liquidation
    - Lip service from CJ

    Several months later what have CJ done or communicated with affiliates.

    Absolutely diddly squat !

    Yet the merchants are still allowed to be active on the network?

    Why haven't publishers done something about it?

  2. #2
    ABW Ambassador
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    They had paid for November sales later on. According to the US law, they can withhold creditor payments for a period because they filed chapter 11. All payments are subject to court approval. But legally they have to pay commission for all sales which happened after their filing. For December payment, we can only bite our finger nails and wait. It is rare though to get back much, even after they reemerges out of chapter 11.

  3. #3
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    Not sure on the law in the US, but in the UK as we are not part of the third party contract between advertiser and network, or have access to it the network can posssibly be liable to pay the full amount due to the publisher, whether the network is in receipt of payment or not.

    Isn't it disappointing that CJ have not had the courtesy to update publishers. An please CJ no replys like "when we have new, you have news" I have the same handbook on "Chestnut Replies and Excuses", I wrote the damn thing.

    Yet why are they allowed to still be active?

  4. #4
    ABW Ambassador
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    quote:
    Originally posted by Qui Gon Jinn:
    the network can posssibly be liable to pay the full amount due to the publisher


    Probably not, because when you become an affiliate of a merchant at CJ, you electronically sign a contract/agreement with the merchant. So you are a creditor.

    I am almost sure CJ's agreement with us says if a merchant fails to pay CJ, we will not be paid.

  5. #5
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    Cheers, I hear where you are coming from

    There are many points where the contracts fails, whereby consideration of laws protecting small businesses are involved and third party agreements, a little similar to agency contracts where the agency is the intermediary.

    Plus the fact CJ have allowed the merchant to trade on the network with negligence and without protection of the publisher's interests.

    I for one was led under the false impression all this time that payments were collected in escrow up until this happened back then.

  6. #6
    ABW Adviser Panel Dynamoo's Avatar
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    Chapter 11 bankruptcy doesn't have an equivalent in UK law, but there's nothing really we can do in the UK if a company files Chapter 11.

    You are right about CJ though - communication is very poor, reaction times to investigating fraud and other issues are very slow or non-existant. Compare this with the proactive approach with other networks. Hmmm.

    ADDED: of course, if you have a substantial business relationship with a company, you also have an obligation to look after your own interest by keeping track of the status of the companies you do business with. Yahoo! is a good place for company news, also F'dCompany can give you an early warning.
    Innovative advertising with Slimeware Corporation and Telephore. Mail-order fuel with Petrol Direct.

  7. #7
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    I have been informed that each affiliate will have to file a claim with the court. CJ will not collect the money (if there is any) on behalf of the affiliates.

    Seems to me CJ is washing their hands of it. Such a shame (or sham).

  8. #8
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    I heeded my own multiple ABW warnings in October and November last year and yanked their links. Got caught by them when they were at LS and vowed not to push them when their conversion ratio dropped off the radar on my traffic.
    Webmaster's... Mike and Charlie

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