Avon ladies seek court 'makeover' over loss of sales turf
Monday July 09 2007
DING Dong, it's Avon Calling! But this time it's lipsticks at 50 paces.
Fifteen Irish women are suing Avon, the iconic door-to-door cosmetics giant, after an unprecedented make-up turf war throughout the country.
The test case, which will be heard in the High Court later this week, is being brought by Mary Davey, a Dublin housewife and "Avon lady" for 13 years.
The case could have wide-ranging implications for people who sell products on behalf of companies selling directly to Irish homes.
The most successful door-to-door make-up enterprise in history, Avon has been bringing front-door service to American housewives since 1886. The key to its success has been its remarkable salesforce - a conglomerate of stay-at-home mothers who sell to other housewives.
The company's American founder, a travelling book salesman, reckoned housewives would trust other women more than men and the company enjoyed an Irish boom in the 1980s.
After a prolonged absence, Avon re-entered the Irish market in 1994, recruiting a number of housewives to work as area managers in designated regions that were exclusive to each Avon lady.
Upmarket
The area managers soon set about building Avon's market share in upmarket Dublin suburbs and elsewhere, working with teams of door-to-door sellers.
The women, who claim they were commercial agents for Avon, understood they had their exclusive areas "for life".
However, two years ago Avon changed its Irish business strategy.
The company wanted to introduce more representatives into the Irish market, allowing new recruits, in time, to become area managers - thereby stripping the Irish agents of their exclusive status.
The 15 women claim the introduction of extra representatives led to a "free-for-all" in the market and decimated their business.
The main issue is whether the 15 women acted as self-employed commercial agents for Avon or were independent, sole traders.
The women, who previously sought an injunction against Avon for removing their "exclusive" areas, say they are entitled to have their "exclusive" areas restored.
Alternatively, they want compensation for the termination of their contracts as they claim they were commercial agents, granted protection under European Union laws.
It is not the first time that the Irish courts have been asked to make a ruling on the status of commercial agents.
Last year, a group of ESSO workers took a landmark decision to the High Court and won the right to be termed commercial agents.
The service station owners claimed that they worked as commercial agents for ESSO, who in turn were owned by the American Exxon Mobil Corporation.
Aspects of that case have been appealed to the Supreme Court.
- Dearbhail McDonald
