When an MSC Forbids You From Working for another MSC...

Sorry to be vague, but I'm not sure how open I should be on this subject. I'll wait to more knowledgeable posters give me the greenlight before providing more information. Basically, I received an e-mail from an MSC stating that I could not work for three other MSC's, or they would terminate my employment. The e-mail said something about recent developments regarding proprietary information. I was wondering what this might entail, is it generally something simple like the other MSC's attempting to steal clients or is it more complicated than that? If it's safe, I'll divulge more information, but I'm just wondering if this is a common claim. I guess I'm slightly worried that I'm not hearing the other side of the story from the other MSC's, and I would hate to be labelled as someone who quits over hearsay. It seems like a tough position to be placed in as a shopper.

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The first I ever heard of something like this was a few days ago when someone said in a post that they were forbidden from working for Coyle (I believe). Maybe they could shed some light on it.
that is illegal as you are a contractor so they cannot forbid you
from working for any other msc. Now if you shopped the exact
same store for both msc's that would be an issue, but they
cant stop you from doing other clients for other msc's unless
they want to classify everyone as employees and provide unemployment
and other benefits that they dont want to do

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There are no stupid questions, but there are a lot of inquisitive idiots
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When you try to please everybody, you end up pleasing nobody
they can't forbid you from working for other companies, but they can also not use you to work for them....and that would be legal..

if company A said I couldn't work for B,C,D....i would quit A and stick with the others

Edited 1 time(s). Last edit at 05/22/2015 03:27AM by jmitw.
For additional clarification, I work in Nevada, so I am an employee. One of the companies that I'm forbidden to work for is Coyle, but I'm not currently contracted with them anyway.
Nevada and being an employee is a whole other beast. Since I don't live there, I don't have a clear answer for you. But if you are indeed an employee, they probably do have the right to forbid you from working for certain MSCs.
I would agree; in Nevada, where you are an employee, they probably can fobit you to work with other MSCs. Maybe Doug Rector will weigh in and let us know what he knows about this.
I have known certain employers who forbid someone to work for another employer. It would be a little awkward if they were competitors but otherwise it just seems a power issue. If you are not working full time for them, how do they expect you to feed your family if you don't have another job. Can someone not specialize in mystery shopping in Nevada?
I am sure what you read was that you cannot be an Employee of another mystery shopping company. As in a W-2 employee. Being a contractor for another mystery shopping company is not what they are excluding.

They are just wording the contract to prevent other MSC owners and sales from signing up to gain intelligence to poach customers.
VinnieRoo did your email say you couldn't do shops or that you couldn't be an employee? There is a difference.

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No, I'm an employee of all the mystery shopping companies in Nevada. You have to be actually. There's a database of people licensed with the Private Investogator's Board, and they can see what mystery shopping companies you work for in Nevada. I'm not really asking about the legality, Nevada is an employment at will state, so they can get rid of me for any reason they want. I was more curious what could have happened to make them make this request. An attempt to steal clients is the first thing that comes to mind.

I feel like just because one company says something doesn't make it true. I perform much more work for the company I'm staying with than the company I'm leaving, but I guess I'm concerned that they could ask the same thing of me again with a different company. I just hope the reason is as justified as they claim.

Edited 1 time(s). Last edit at 05/22/2015 05:42AM by VinnyRoo.
I have seen this off and on for several years now for the Nevada companies. Yes, it is legal in NV because no shopper is an IC there (if they are abiding by the law). And, yes, there is one major NV MS firm that forbids its MS employees from working with several others. The "sharing" of proprietary information allegedly happened a while back, since this has been a topic for at least a couple of years, maybe more. Supposedly on or more of the NV MS firms "encouraged" the sharing of the info. I'm not trying to be coy; this is really just all I know and have heard from several different sources that I consider reliable.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

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Sounds like a crappy deal all around, but if it's legal it's legal. As an employee of X, if they forbid me from working for Y or Z, I would ask them if they planned on paying more to make up for lost income. They would have the right to fire me for that, but I could still work for Y or Z…
I live in Nevada and got the same email. It will be a no brainer to stop working for A, B, and C (I actually only work for A) and stick with D. I make most of my income from D. I enjoyed a great relationship with A for the six months I've been shopping and will miss them. I only did three or four shops a month so the income loss will be minimal. If this has happened before, why weren't we advised when we got hired?
I think this mostly has a lot to do with "freezing out" a competing PI firm who is undercutting prices more than anything else. It's typical gangster-style old-school Nevada business practices....but then the entire PILB requirement is based on that same business model, so you gotta expect that kind of behavior.

I would say that the demand and the enforcement are not well aligned. They sent the same request a few years back and I ignored it, and stayed registered with all of the PI firms. Never heard a peep...but then I have a good relationship with the PI firms and it made good financial sense for them to keep me as a shopper, since some of their clients (MSC's) would request me for shops when they signed up new clients. If you are valuable to the firm, I'm guessing they will look the other way.
@VinnyRoo wrote:

No, I'm an employee of all the mystery shopping companies in Nevada. You have to be actually. There's a database of people licensed with the Private Investogator's Board, and they can see what mystery shopping companies you work for in Nevada. I'm not really asking about the legality, Nevada is an employment at will state, so they can get rid of me for any reason they want. I was more curious what could have happened to make them make this request. An attempt to steal clients is the first thing that comes to mind.

I feel like just because one company says something doesn't make it true. I perform much more work for the company I'm staying with than the company I'm leaving, but I guess I'm concerned that they could ask the same thing of me again with a different company. I just hope the reason is as justified as they claim.

And it's true, that (HS-Brands) needs to know if you are employed by (BestMark). HS-Brands can be reluctant to keep you as an employee, if you are employed with another company and fail to let them know... You are actually required to let Firm A know you are working with Firm B, and so on...On your application, you must list all companies...

Fast Fact: The state of Nevada can fine you up to $2,500 per shop for the first offense, $5,000 per shop for the second offense, and $10,000 per shop for each additional offense thereafter, for not working with a MSC company, that is licensed with the PILB.
I think it's important to be clear about the terms when discussing mystery shopping in Nevada. You are throwing out "facts" that are not entirely accurate.

MSC is typically understood to be a mystery shopping company. PI would be a private investigator. They may or not be one and the same. The typical set up is that PI firms in Nevada offer their services to MSCs and employ shoppers to perform shops for the MSCs (Their clients). In some cases, MSCs hire a licensed private investigator to work for them, who in turn hire shoppers directly. Those same companies often offer their PI services to other competing MSCs. The law is that you must be registered and working under a licensed PI...not that the MSC itself has to be licensed.

If the whole thing sounds somewhat corrupt and incestious...that's because it kind of is. Why would one MSC want to give all of their forms, client info and shopper info over to another MSC jut so that they can do business in Nevada?

In my option, I would tend to stick with he PI firms that are just that...PI firms that could care less about mystery shopping, except to take their cut and employ shoppers for other MSCs. Once you get into being employed by Bestmark directly, it's no wonder that competing MSCs would not want you working for them.

...and I may be wrong, but I don't think there is a single case of the PILB coming after an individual shopper themselves, so I would not be so concerned with the fines that are levied. Those are generally directed at MSCs who attempt to recruit shoppers and perform shops in Nevada without having a licensed PI involved.
@SunnyDays2 wrote:

@VinnyRoo wrote:

No, I'm an employee of all the mystery shopping companies in Nevada. You have to be actually. There's a database of people licensed with the Private Investogator's Board, and they can see what mystery shopping companies you work for in Nevada. I'm not really asking about the legality, Nevada is an employment at will state, so they can get rid of me for any reason they want. I was more curious what could have happened to make them make this request. An attempt to steal clients is the first thing that comes to mind.

I feel like just because one company says something doesn't make it true. I perform much more work for the company I'm staying with than the company I'm leaving, but I guess I'm concerned that they could ask the same thing of me again with a different company. I just hope the reason is as justified as they claim.

And it's true, that (HS-Brands) needs to know if you are employed by (BestMark). HS-Brands can be reluctant to keep you as an employee, if you are employed with another company and fail to let them know... You are actually required to let Firm A know you are working with Firm B, and so on...On your application, you must list all companies...

Fast Fact: The state of Nevada can fine you up to $2,500 per shop for the first offense, $5,000 per shop for the second offense, and $10,000 per shop for each additional offense thereafter, for not working with a MSC company, that is licensed with the PILB.

What does this have to do with anything that has been discussed?

I think you guys are way too pessimistic about mystery shopping in Nevada, it's by far the best state to mystery shop in. We get paid every two weeks rather than sometimes 30, 60 or even 90 days with other companies. Our base pay is generally higher. I really just wanted some opinions on what might be the cause of one MSC asking you not to work for another MSC. The whole lecture about how you're suppose to behave, who you're suppose to notify, all of that is really unnecessary. I didn't start this thread to put myself on trial, I just wanted a discussion about the MSC's actions. I think I'll refrain from posting here if these are the preachy answers I will get to a simple, honest question.
I was surprised to see that some shops were significantly lower. For instance a particular speedy car company that pays $150 everywhere else only pays $80 in NV.

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Hmm. I don't know what happened. I used to be registered with all of the NV PI firms that employ shoppers. I am only registered with HS right now, since I renewed in Dec.

I don't know who is undercutting, but my money is on QSI.
What did you renew? Your PILB card? Do you need to sign up with each company again after you renew?
@VinnyRoo wrote:


I think you guys are way too pessimistic about mystery shopping in Nevada, it's by far the best state to mystery shop in. We get paid every two weeks rather than sometimes 30, 60 or even 90 days with other companies. Our base pay is generally higher. I really just wanted some opinions on what might be the cause of one MSC asking you not to work for another MSC.

I think the question was answered, though, Vinny. Some felt that it had to do with proprietary information being shared and my opinion is that is firmly planted in competition between the PI firms for the MSC business.

My work card expired in November and I have chosen not to renew for now, mostly because of the problems discussed above. Nevada is not the best state to shop in, IMHO, since you are severely limited in what companies you can shop for now. The only company I was disallowed to shop for in CA as a registered PILB cardholder was Marketforce, and that was fine with me (You can either be a Nevada shopper or "everywhere else" shopper with them, since they code your account differently for Nevada). I've grown tired of the payroll process constantly changing and the infighting between PI firms. It wasn't worth the hundreds of emails I received each month for the few jobs I would occasionally take in Vegas, and it's not like Vegas is lacking offers of free food without a report attached!

On top of that, the paycheck for your time may have come every 2 weeks, but the reimbursement was sometimes tied to the same mystery shopping payment schedule that everyone else is subjected to. The main advantage would be the protection of the PI firm if there was an issue with the shop, but you also don't get nearly the amount of shop offers in NV that I have access to in LA, since so many companies are unwilling to foot the extra costs of shopping Nevada outlets.
@SteveSoCal wrote:

@VinnyRoo wrote:


I think you guys are way too pessimistic about mystery shopping in Nevada, it's by far the best state to mystery shop in. We get paid every two weeks rather than sometimes 30, 60 or even 90 days with other companies. Our base pay is generally higher. I really just wanted some opinions on what might be the cause of one MSC asking you not to work for another MSC.

I think the question was answered, though, Vinny. Some felt that it had to do with proprietary information being shared and my opinion is that is firmly planted in competition between the PI firms for the MSC business.

My work card expired in November and I have chosen not to renew for now, mostly because of the problems discussed above. Nevada is not the best state to shop in, IMHO, since you are severely limited in what companies you can shop for now. The only company I was disallowed to shop for in CA as a registered PILB cardholder was Marketforce, and that was fine with me (You can either be a Nevada shopper or "everywhere else" shopper with them, since they code your account differently for Nevada). I've grown tired of the payroll process constantly changing and the infighting between PI firms. It wasn't worth the hundreds of emails I received each month for the few jobs I would occasionally take in Vegas, and it's not like Vegas is lacking offers of free food without a report attached!

On top of that, the paycheck for your time may have come every 2 weeks, but the reimbursement was sometimes tied to the same mystery shopping payment schedule that everyone else is subjected to. The main advantage would be the protection of the PI firm if there was an issue with the shop, but you also don't get nearly the amount of shop offers in NV that I have access to in LA, since so many companies are unwilling to foot the extra costs of shopping Nevada outlets.

Thanks for the response, this was more of what I was looking for. The e-mail specifically said proprietary information, so that was not speculation on behalf of the company who sent out the e-mail at least. What you wrote about speculating that it had to do with competition between the firms is exactly the type of feedback I was looking for. The firm we are being asked to resign from pays significantly less than the firm that is asking us to resign. If they are making this decision to protect the business from companies coming in, significantly undercutting the price and mystery shopper pay along with it, I think I'm quite fine with the decision actually. I wish they had a more legit reason than just that, but I understand if they want to keep their margins up, especially if shoppers get compensated for their profit along the way. My main concern was never losing this company since the pay was so low, but the fear that they would ask us to do this again with other companies. There are other companies in Nevada that pay quite well, and it would be an unfair position to hold to ask us to quit those companies as well. For the time being, that is not the case though.

As for best places to shop, I really enjoyed your opinion. I do travel sometimes for mystery shopping, but I think like most people, I strongly prefer to work where I live. So, opportunity costs that I may lose in Florida or even nearer states like Colorado or Arizona don't weigh on me too much. I have found a few MSC's that will not allow to sign up since I reside in Nevada, but without trying to get anyone in trouble, there are usually easy ways around that. Most companies have no problem hiring someone from Nevada though, as there's no legal issue as long as we are not completing shops for them in Nevada. Once I leave the state, I'm the same as everyone else.

I'm not surprised that there are more shops in LA than Las Vegas, it's a much bigger place. I'm not sure if that has to do with the structure of mystery shopping in Nevada, but I certainly agree, that there must be some loss of shops just from clients not willing to deal with the extra fees. What percentage that is, I have no idea. I think generally speaking, we probably have a lot more fun shops in Las Vegas particularly. I know mystery shopping is a job, so perhaps how cool the job is should not be much of a factor, but all other things being equal, I like doing something is fun rather than a routine shop. At my age, it is definitely a perk of mystery shopping in Nevada. I don't think any of us should think of this as a long-term career unless we have plans to move up in the world of mystery shopping or are able to get coveted video shopping accounts, which I heard are quite lucrative. Other than that though, I think our ceiling is generally capped at some point, and I don't think that ceiling is extremely high. Some posters on here may refute that claim though, as several of them give the impression that they do really well. I do well myself, but nothing to brag about.

This is the first time that infighting between PI firms has reached the shopper level. I don't dispute that they may fight all the time, but this is the first time it's directly affected me. It was certainly disconcerting, that's why I started this post. I hope this is not a constant thing; otherwise, I think they will be kicking themselves as they lose shoppers. I probably don't have as much of a basis of comparison as you do as it sounds like you travel to many different states for shopping, but so far, Nevada has been good to me. I'm definitely trying to stay open-minded to your opinion though, you made lots of good points. I could learn a lot from what you wrote.
If you are an independent contractor a MSP can not limit you to work only for them. If you are an actual employee of a MSP in Nevada then I would expect that the MSP you are working for can tell you that you can not work for another mystery shopping company.
Hmmm.....

A reputable MSC will not forbid you to shop for other MSC. In fact, a good MSC will encourage you to do shops with multiple MSC.
So, I learned a few good things from this post. Most important to me is that in Nevada, they are Private Investigator firms, not MSC's. I always knew they have a Private Investigator's license, but I thought they were also MSC's. That distinction means that I am an employee of the Private Investigator firm, and they basically can ask me to do whatever they please to remain employed. Nevada is an employment at will state, so they could fire me for any reason anyway. I think I made the right decision, but it was a tough one.
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