Engaging a foreign agent, representative, distributor or channel partner (collectively "channel partners") can greatly assist a company in increasing foreign sales. After all, these individuals or entities "know the landscape."
As readers of this blog well know, engaging a foreign channel partner can also be risky business under the FCPA.
In a previous post, I talked about certain minimum elements of an effective FCPA compliance program as typically set forth in DOJ non-prosecution or deferred prosecution agreements (see here).
One of those elements is the "promulgation of a compliance code, standards and procedures designed to reduce the prospect of violations of the FCPA" which "should apply to all directors, officers, and employees and, where necessary and approopriate, outside parties acting on behalf [of a company] in a foreign jurisdiction, including agents, consultants, representatives, distributors, teaming partners, and joint venture partners."
HP has apparently determined that it is necessary and appropriate for its global network of approximately 155,000 channel partners to complete HP's regulatory compliance training program or risk losing their partner status (see here).
A HP spokesperson confirmed that "HP is, in fact, working to have all of its global channel partners undergo training regarding government legal and regulatory compliance [including the FCPA] as part of establishing or renewing their Business Development Agreement" with HP.
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Can't find a thing on this at HP's partner site unless you have to be logged in to the partner portal. Why the big secret?
ReplyDeleteNo one at HP by email or by phone knows what this is either. The date on that website is not correct. It says you need to be in compliance by Oct 31 -09 and on the fax it is Dec 31-09. Must pay by Credit Card? Hummmmm, no red flag going up at all with that one.
The site it takes you to is a mirror site of Integrity Interactive. Caveat: The site it takes you to was just created April of 09 and it's not Integrity's site.
I too had some initial concerns about the validity of the information. Thus, I e-mailed HP and the quoted language I included in the post is from a HP communications manager who confirmed the program.
ReplyDeleteLooks like HP may be in trouble with the Department of Justice. They have been going after companies for FCPA violations. This program looks like a joke though. 1) this is like an admission by HP that is has nothing in place! 2) there is no way they will get everyone to pony of the cost, and 3) if you look at what they want you to complete, it is a self-certification that you are not a crook. What good is that in the big picture?
ReplyDeleteCalled HP's partner line (800 544-9976) and the lady I spoke to was familiar with this and confirmed that they do NOT send faxes and they do NOT charge credit cards and to IGNORE this obvious scam. Just FYI in case somebody else hits this site looking for the same info.
ReplyDeleteHi Jason,
ReplyDeleteI work for HP in the Solution Partners Organization.
I apologize for the confusion regarding HP’s legal and regulatory compliance initiative. This is not a scam. It is real program and is required for all partners to maintain their Business Development Agreements with HP.
Unfortunately the person you spoke with did not give you the correct information. We are aware of the confusion and working with our front line support teams. We are also stepping up our communications efforts to ensure our partners understand what is happening and how to participate.
We have contracted with a third party, Integrity Interactive, to coordinate the process our behalf. They sent out the faxes and will send additional fax reminders for partners who may have missed the first one. The payments are being made directly to Integrity Interactive, not HP. That is why they are using a credit card process.
If you have any questions, you can use the following email address: pdsupport@partnerdiligence.com.
Thank you.
This still smells like more of a scam to me. We received the fax, but are not aware of a partner agreement with HP. The only contact information from those saying it is not a scam is with "partnerdiligence.com," which according to whois does not comply with the whois directory regulations (probably bad address/contact information). Anyone else received further confirmation on this?
ReplyDeleteI just spoke with HP Partner support (888)629-6914 and they confirmed this is legit.
ReplyDeletewow... all i get froms this is ... 50% says is legal and the 50% says is not.
ReplyDeleteWe are not even an HP Partner and we got this stupid fax. This is obviously a bunch of bologna... and I simply hate belogna.
ReplyDeleteThis is utterly ridiculous! FCPA does not require this and there is no liability for HP for anything their "partners" do that is illegal under FCPA unless we are "authorized agents" or employees of HP which our business agreement specifically rules out both. This is either a scam or a really bad PR stunt for HP. What is next? charging me $500 to certify that I won't steal candy, run red lights, or kill someone? I won't do it and HP can kiss my *cough, cough* partnership goodbye.
ReplyDeleteFrom the DOJ website:
The FCPA potentially applies to any individual, firm, officer, director, employee, or agent of a firm and any stockholder acting on behalf of a firm. Individuals and firms may also be penalized if they order, authorize, or assist someone else to violate the antibribery provisions or if they conspire to violate those provisions"
apparently this issue hasn't ended - partners are starting to recieve yet more of these emails/faxes about paying for the program. As an HP partner I've jumped through the hoops, paid the fee, done the [absolutely useless] traing, and nothing has changed except a $120 fee paid for what I consider to be not my concern. If HP needs to "train" us partners, they need to do it on their own expense, NOT OURS.
ReplyDeleteWhat surprises me the most is that it is nearly impossible to find much of this on google. For 154,000 partners out there, mnost of whom I"m sure disagree on many levels with this situation, there's almost nobody compaining.
Read the entire agreement. There is some content in there that seems NOT related to FCPA. In fact, there is a section on bids that may be language of interest to people who agree to it.
ReplyDeleteI wouldn't agree to it. We are dropping from the program.
Anybody that post positive comments about this is realted to this obvious scam!
ReplyDeleteI'm not convinced this program is authentic at all. In fact in two different emails they call the program two different names and when you Google Integrity Interactive you get an entirely different domain. The domain the emails tell you to go to as fore mentioned are not even registered properly which is a tell tale sign. I mean seriously why would HP force all their partners to pay $120 when most are making them thousands if not millions a year? It's clearly not logical.
ReplyDeleteMike, can you confirm that you in fact were not replying to a spoofed email instead of actually contacting HP? It's very easy to redirect emails etc these days. With HP's CEO recently stepping down due to a scandal who knows what to expect. Their stock has recently dropped 10%.
ReplyDeleteAs I indicated in my October 6th comment, I initiated an e-mail to HP - I was not responding to an e-mail I received.
ReplyDeleteThis definitely puts a much needed spotlight on dubious business ethics of big companies. Before HP can even decide on channel management services, it just right that partners undergo the training and certification needed especially with dealing with developing countries' corrupt government.
ReplyDeleteAfter a year of threatening letters and faxes, today we received a phone call threatening again to cut us off. They are essentially blackmailing us to take anti-bribery training. We're not a large dealer but we do sell around $500k/yr of HP equipment. I guess I'll sell Lenovo now...
ReplyDeleteHey EJ! Which division of HP do you work for? This whole thing is clearly HP's reaction to getting in to trouble over the FCPA. How checking to see if a dealer even sells outside the country before forcing this steaming pile of 'training' on us.
ReplyDelete