Wednesday, October 26, 2011

Update: Parents sue publisher Scholastic alleging misleading billing, marketing scheme

I think it is safe to say that our school bookfair that Denise Bohman is so proud of having run is part of a corporate marketing scheme that is reported to exploit school children and their families through false advertising.

According to a statement by the law firm that has filed suit vs Scholastic found on on PR Newswire, Scholastic "uses its marketing presence within elementary schools to convince parents to purchase educational products, and then bombards parents with unsolicited goods, demanding payment in violation of state and federal law."

Apparently, these marketing ploys and bookfairs are wildly profitable since Scholastic's top executives have received huge pay raises in the past 4 years. The total compensation for top executives grew from about $2.9 m to $9.7 m even though their stock price has fallen. Between 2007-11 their CEO's total compensation has more than doubled, their CFO's compensation grew almost 6 fold, and the president of Scholastic Education has seen her compensation rise by 50%. These figures were reported to Morningstar.

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