october 14 michigan retailer

Sales climb during Buy Nearby eventMRA offers help filingclaims in $5+ billioncredit card settlement Retail sales rose across Michigan on

Buy Nearby’s Get Caught Blue-Handed Day, according to an analysis of Mich-igan Retailers Association members’

MRA board elects officers;names Marshall new chair

Dan Marshall, president of fam-ily owned Marshall Music Co., headquartered in Lansing, was

elected chair o f t h e M R A Board of Direc-tors for 2014-15 at its August 19 meeting.

M a r s h a l l Music was es-tab l ished in 1948 by Dan’s

parents and has become one of the largest full-line music retailers in the country. The company oper-ates stores in Lansing, Kalamazoo, Grand Rapids, Troy, West Bloom-field, Allen Park and Traverse City.

Marshall was first elected to the board in 2008. As chair he succeeds Tom Ungrodt, president and CEO of Ideation, Inc., Ann Arbor, and own-er of two Michigan gift stores.

Ungrodt served two consecutive one-year terms as chair, with Mar-shall as vice chair.

Named as the new vice chair was Orin Mazzoni, Jr., owner of Orin Jew-elers in Garden City and Northville.

Mazzoni was first elected to board in 2007 and is a past presi-dent of MRA’s Michigan Jewelers

credit and debit card transactions.Although the weather in much of

the state was cool, wet and blustery on Saturday, October 4, total sales

volume climbed by 4.5 percent over the first Saturday in October last year, the study of nearly 500 members’ card sales found.

Get Caught Blue-Handed Day is the day when MRA’s year-round Buy Nearby campaign focuses the most attention on the importance of buying from retail businesses in Michigan.

Retailers are encouraged to make the shopping day even more fun and festive, and shoppers are urged to go shopping with friends and rela-tives and “get caught” supporting their communities and Michigan’s economy.

It was the campaign’s second an-nual Get Caught Blue-Handed Day. Sales also rose last year, by double digits on a warmer and more pleas-ant fall day.

“We’re pleased by the overall re-sults and wish to thank all of the shoppers and retailers who par-ticipated in the event. Although the weather didn’t cooperate, store own-ers and consumers did,” said James P. Hallan, MRA president and CEO.

Greater AwarenessHallan said it appears more busi-

ness people and consumers were aware of Buy Nearby and wanted to

4 5 9Protection for Your Bank AccountRetailers Mutual will begin automatically providing all policyholders protection against their commercial bank accounts being hacked.Page 9

Apple Pay a Game-ChangerAre you ready for the millions of Apple fans who expect to pay for goods with their new contactless devices? You better be!Page 5

Friends of RetailMRA has endorsed Gov. Snyder and Atty. Gen. Schuette in the Nov. 4 election and designated legislative candidates who support retail.Page 4

Continued on page 11

®

October 2014 Vol. 39 No. 5 The official publication of the Michigan Retailers Association www.retailers.com

Continued on page 5

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Insurance planexpects final ok

Final state approval is expected this fall for the plan put forward by Retailers Mutual Insurance Company to help it grow more rapidly, increase its financial strength and provide greater benefits to policyholders in the future.

The growth plan was approved overwhelmingly by policyholders in a vote at the company’s Annual Meet-ing on August 19 at MRA and RMIC headquarters in Lansing.

“Policyholders’ affirmative vote cleared the way for final approval by the state Department of Insurance and Financial Services (DIFS). We ex-pect to receive DIFS’ signoff any week

Businesses that accepted Visa or MasterCard credit and debit cards any time between January 1, 2004, and November 28, 2012, can begin the process of obtaining a share of the recently approved $5+ billion settlement of the class action lawsuit against the card organizations.

Michigan Retailers Association has hired a class action settlement expert, MCAG, to streamline the claims-filing process and secure re-coveries for eligible businesses.

Although official claims forms are not yet available, businesses can act now to ensure that a proper and time-ly claim is filed on their behalf.

Businesses can visit the program’s website at https://mcagvmc.com/portal and enter the code MRA100 to complete an enrollment form online.

There is no cost to enroll, and service fees are based on the amounts actually recovered.

Data CollectionThe MRA/MCAG Settlement Recov-

ery Service will research and provide supporting data on the amount the business processed during the period covered by the settlement. The service also will file the claim and track it on behalf of the participating business.

While businesses may submit a claim on their own and there are other companies that offer filing assistance, MRA believes MCAG provides the best value to enrolled businesses. For example, MCAG:

• Has a proven history of increasing recoveries for clients when compared to a default filing method. In a recent national class action settlement, MCAG clients recovered an average of 44 percent more than claimants who were not represented by MCAG.

The Buy Nearby mascot admires a sign outside a downtown Marshall store.Photo by David Trumpie

Marshall

2

Led by the friendly and loveable Buy Nearby Guy, MRA’s second an-nual “Get Caught Blue-Handed” day is now in the books.

The response to our campaign to support retail businesses that have invested in Michigan by buying nearby has been overwhelming pos-itive. Everyone loves the concept of supporting Michigan, and Buy Nearby Guy has traveled through-out the state carrying this powerful message.

When the idea was hatched two and half years ago, I’m not sure any of us at MRA knew how the campaign would go. We have been pleasantly surprised. The print, radio and TV media, the Michigan businesses, the local communities and the shoppers have all embraced the Buy Nearby concept and our Buy Nearby Guy mascot.

One of the most fun things to watch has been how much people enjoy getting their picture taken with Buy Nearby Guy. No matter their age, people flock to the giant

blue mascot to get a quick picture. This issue of Michigan Retailer cap-tures just a few of those remarkable shots, but the theme is strong. We are building an important brand that everyone enjoys.

Now, if you don’t mind, I’d like to

Michigan Retailer www.retailers.com

“Everyone loves the concept of supporting Michigan, and Buy Nearby Guy has traveled the state carrying this powerful message.”

by James P. Hallan, MRA President and Chief Executive Officer

Michigan embracing Buy Nearby Guy

share a little secret or two. A lot of his fans try to get Buy

Nearby Guy to say something. But the Mascot Code is etched in stone. Mascots cannot talk.

T h e y c a n wave, engage in photo shoots , p a r t i c i p a t e i n c o m m u n i t y events, walk the streets…but they cannot speak. It is the mascot way.

Finding people to don the mascot costume is also a bit tricky. Most events are on week-ends and require not only a time commitment outside of normal work, but a personality that loves events and crowds.

Sometimes the days can be very hot and the mascot uniform a bit uncomfortable. But like the U.S. mail must be delivered through rain or snow, our mascot has a job to do and the show must go on.

Perhaps you are wondering, who is this mascot?

T h e i d e n t i t y must remain se-cret and the code of s i lence must prevail, of course. But I can tell you that this summer and fall, the Buy Nearby Guy cos-t u m e h a s b e e n worn by six differ-ent individuals.

A n d a t e v e r y appearance, Buy Nearby Guy needs a “ h a n d l e r ” t o help him around obstacles and get through doorways designed for hu-mans. After al l , our mascot stands over eight feet tall, and we don’t want him to lose the U.P. to a store entrance, t re e b r a n c h o r

street awning. While honoring the code of mascot

silence, I have enticed our mascot to pen a few observations at the end of this article. I thought you might enjoy his perspective.

It bears repeating that we’ve had great fun promoting Michigan and

encouraging residents to think about the power of purchasing lo-cally. For as we all know, a dollar spent locally turns many times throughout the community and our

state, creating jobs, new investment and opportunity.

One final thought before the mas-cot note.

We all live in Pure Michigan be-cause we choose to do so. It’s a wonderful place to raise a family and enjoy the beauty of our diverse sea-sons with good Midwestern folks who understand the values of hard work, decency and kindness.

But as citizens invested in Michi-gan, we also have a duty to make sure that our government runs effectively. So, on November 4, please remember to vote. It is a precious right.

At the state level, Michigan Re-tailers has endorsed Governor Rick Snyder and Attorney Gen-eral Bill Schuette. Both have done much to move Michigan forward and have rightfully earned our en-dorsement.

Now, as promised, a politics-free observation from our unnamed mas-cot, Buy Nearby Guy…

Hi everybody! It’s tough typing when you only have four cartoon-type fingers on each hand, but I’ll try my best.

I just want to say, I mean write, a huge thanks to everyone who has come out to see me so far and pose for a photo. I’ve loved meeting and standing beside all of you. It makes me feel really good inside. Just as good as seeing you carrying shopping bags from nearby stores or farmers markets and telling me you know how important it is to support retail businesses in Michigan.

If I haven’t been to your town yet, please help arrange a visit. And, ever ybody, be sure to encourage all your friends and relatives to Buy Nearby all year-round. Because when you do, and they do, you’ll all feel as good inside as I do! And that’s really good. Promise!

Board of Directors:

Dan MarshallChair Marshall Music Company, Lansing

James P. HallanPresident and CEOMichigan Retailers Association

Orin Mazzoni, Jr.Vice ChairOrin Jewelers, Garden City

Peter R. SobeltonTreasurerBirmingham

William J. HallanSecretaryMichigan Retailers Association

Thomas UngrodtPast ChairIdeation, Ann Arbor

Brian DucharmeAT&T

Becky Beauchine KulkaBecky Beauchine Kulka Diamonds and Fine Jewelry, Okemos

Joseph McCurryCredit Card Group

Larry MullinsBrandon Tire & Battery, Ortonville

R.D. (Dan) Musser IIIGrand Hotel, Mackinac Island

Barb SteinGreat Northern Trading Co., Rockford

Joe SwansonTarget Corp.

James WalshMeijer, Inc., Grand Rapids

D. Larry ShermanBoard Member Emeritus

Michigan Retailers Services, Inc.Board of Directors:

Bo BrinesLittle Forks Outfitters, Midland

Bill GoldenGolden Shoes, Traverse City

Lisa McCalpine-WittenmyerWalgreens

James P. Hallan Thomas B. ScottPublisher Editor

Pat KerwinDesign Manager

Publication Office:603 South Washington AvenueLansing, MI 48933517.372.5656 or 800.366.3699Fax: 517.372.1303www.retailers.comwww.retailersmutual.com

Subscriptions:Michigan Retailer (USPS 345-780, ISSN 0889-0439)is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.

October 2014 3

Most Michigan retai lers are forecasting improved sales for fall, ac-cording to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago.

The August index showed, for the seventh consecutive month, that a ma-jority of retailers expect year-over-year gains for the next three-month period.

August sales retreated after an ex-ceptionally strong June and July, but retailers’ forecasts remained solid, according to the index.

“We’re looking forward to re-tailers’ forecasts for the holiday shopping season, given their opti-mism most of this year,” said MRA’s Tom Scott, senior vice president communications and marketing. “We’ll have those numbers by the end of October.”

The August sur vey o f MRA members showed 38 percent of retailers increased sales over the same month last year, while 42 percent recorded declines and 20 percent reported no change. The results create a seasonally adjust-ed performance index of 46.0, down from 74.9 in July.

A year ago August the Index stood

at 52.8.The 100-point Index gauges the

performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Reserve. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity.

Looking forward, 54 percent of retailers expect sales during Sep-

Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.

3-Month Outlook Index

70

80

60

50

40

30

13-14

12-13

JAN

FEB

APR

MAY

MAR

AU

G

OCT

SEP

NOV

JUN

JUL

DEC

Current Performance Index

70

80

60

50

40

30

13-14

12-13

JAN

FEB

APR

MAY

MAR

AU

G

SEP

OCT

NOV

JUN

JUL

DEC

Index shows retail industry upbeat about fall salesMICHIGAN RETAIL INDEX

700

600

500

400

300

200 (millions)

2013 2014

602 629

587

649682 681

Jun Jul Aug

Be sure to complete youronline survey each month!

tember–November to increase over the same period last year, while 14 percent project a decrease and 32 percent no change. That puts the seasonally adjusted outlook index at 70.6, down from 76.7 in July.

A year ago August the Index stood at 70.3.

State sales tax receipts totaled $629.2 million in August 2014, 4.5 percent above the year-ago level and

$26.6 million above the forecasted level for the month. On a year-to-date basis, sales tax collections are up 1.5 percent from 2013.

Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www.retailers.com/mra/news/michigan-retail-index.html. The website includes figures dating back to July 1994.

64 Michigan Retailer www.retailers.com

Michigan Retailers Association has endorsed Gov. Rick Snyder and Attorney General Bill Schuette for re-election on November 4.

In addition, 77 incumbents and can-didates for the Michigan Legislature have been designated by MRA as a “Friend of Retail.”

The Association’s Board of Di-rectors unanimously endorsed the governor and attorney general, pointing to their leadership and understanding of the importance of Michigan’s retail industry to the state’s economy.

MRA enjoys a strong working rela-tionship with both leaders.

The designation as “Friend of Re-tail” is based on the lawmakers’ and candidates’ answers to an issue-oriented questionnaire and on the legislators’ votes on key retail issues.

The following 28 state Senate candidates, listed by district, were designated as a Friend of Retail for the November 4 General Election:1. Coleman Young II (D-Detroit)3. Morris Hood III (D-Detroit)5. David Knezak (D-Dearborn Heights)7. Patrick Colbeck (R-Canton)8. Jack Brandenburg (R-Harrison Twp)

MRA’s ‘Friends of Retail’ for November 4 election9. Steven Bieda (D-Warren

12. Jim Marleau (R-Lake Orion)13. Marty Knollenberg (R-Troy)14. David Robertson (R-Grand Blanc)15. Mike Kowall (R-White Lake)16. Mike Shirkey (R-Clark Lake)19. Mike Nofs (R-Battle Creek) 20. Margaret O’Brien (R-Portage)21. John Proos (R-St. Joseph)22. Joe Hune (R-Hamburg)25. Phil Pavlov (R-St. Clair)26. Tonya Schuitmaker (R-Lawton)27. Jim Ananich (D-Flint)28. Peter MacGregor (R-Rockford)29. Dave Hildenbrand (R-Lowell)30. Arlan Meekhof (R-West Olive)31. Mike Green (R-Mayville)32. Ken Horn (R-Frankenmuth)34. Goeff Hansen (R-Hart)35. Darwin Booher (R-Evart)36. Jim Stamas (R-Midland)37. Wayne Schmidt (R-Traverse City)38. Tom Casperson (R-Escanaba)

The following 49 state House candidates, listed by district, were designated as a Friend of Retail for the November 4 General Election:17. Bill LaVoy (D-Monroe19. Laura Cox (R-Livonia)20. Kurt Heise (R-Plymouth)

21. Carol Fausone (R-Canton)23. Pat Somerville (R-New Boston)24. Anthony Forlini (R-Harrison Twp)25. Henry Yanez (D-Sterling Heights)26. Jim Townsend (D-Royal Oak)32. Andrea LaFontaine (R-Richmond)38. Kathy Crawford (R-Novi)39. Klint Kesto (R-Commerce Twp)41. Martin Howrylak (R-Troy)43. Jim Tedder (R-Clarkston)45. Michael Webber (R-Rochester Hills)46. Bradford Jacobsen (R-Oxford)47. Henry M. Vaupel (R-Fowlerville)50. Craig Withers (R-Grand Blanc)51. Joseph Graves (R-Linden)56. Jason Sheppard (R-Lambertville)61. Brandt Iden (R-Kalamazoo)63. David Maturen (R-Vicksburg)64. Earl Poleski (R-Jackson)67. John Hayhoe (R-Holt)68. Andy Schor (D-Lansing)70. Rick Outman (R-Six Lakes)71. Tom Barrett (R-Potterville)72. Ken Yonker (R-Caledonia)73. Chris Afendoulis (R-Grand Rapids)74. Rob VerHeulen (R-Walker)76. Donijo DeJonge (R-Grand Rapids)77. Tom Hooker (R-Byron Center)78. Dave Pagel (R-Berrien Springs)79. Al Pscholka (R-Stevensville)81. Dan Lauwers (R-Brockway)83. Paul Muxlow (R-Brown City)86. Lisa Posthumus Lyons (R-Alto)

87. Mike Callton (R-Nashville)88. Roger Victory (R-Hudsonville)89. Amanda Price (R-Holland)93. Tom Leonard (R-Lansing)94. Tim Kelly (R-Saginaw Twp)97. Joel Johnson (R-Clare)99. Kevin Cotter (R-Mt. Pleasant)

100. Jon Bumstead (R-Newaygo)101. Ray Franz (R-Onekama)103. Bruce Rendon (R-Lake City)104. Larry Inman (R-Williamsburg)106. Peter Pettalia (R-Presque Isle)108. Ed McBroom (R-Vulcan)

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RETAIL TECHNOLOGY NEWS

John Mayleben CPP, is MRA senior vice president technology and new product development and a national expert on electronic payment processing. He is the first person in Michigan and among the first in the nation to receive the Certified Payments Professional designationfrom the national Electronic Transactions Association.

Get ready for new worldof Apple Pay technology

Apple’s much-a n t i c i p a t e d announcements of the iPhone 6, iPhone 6+ and the Apple Watch re k i n d l e d e n -t h u s i a s m f o r the company’s game-changing

technology – as well as its market-ing. Much of the public attention was focused on the long-rumored and soon-to-be-here wristband device.

From the retail industry’s per-spective, however, the real game changer in the bundle of goodies was the introduction of NFC (Near Field Communication) capabilities as part of the new iPhones and wristwatch.

NFC allows a credit card transac-tion to be initiated without having the card (or in this case, the device) come in contact with your POS sys-tem or terminal.

Sometimes this is referred to as “tap and go” or “contactless.” Apple has wrapped it in a slick marketing package it calls Apple Pay. The web-site crows: “Your wallet. Without the wallet.”

Debate SettledMost terminals today are not en-

abled for contactless transactions. Until the announcement by Apple, it was always an esoteric discussion about which would come first, the terminal base at retail stores or the card (or iPhone) base in the pocket of consumers.

Apple’s products will likely settle that debate in quick order. Its legions of consumer fans will create the de-mand that card issuers and retailers must satisfy.

Are you as a retailer ready for this major change?

How big a deal is this? Well, last year, with a much less anticipated rollout of the then-new iPhone 5 mod-els, Apple sold nine million units the first weekend the hardware was avail-able. Apple then sold another 30-50 million units each quarter.

This means that in any given year, a significant number of your custom-ers will be carrying a new iPhone or Apple Watch.

Clearly, due to the sheer number of iPhone users in the U.S. (and around the world), the chicken-or-egg ques-

tion is now a moot point.

Upgrade TerminalWe will, very shortly, have a large

number of cardholders who will be carrying contactless credentials in their pocket. And, much like the six-year-old with his first allowance, it will be “burning a hole in his pocket” to use these devices to purchase goods or services.

Again I ask, are you ready?Today, the primary terminal that

will support a contactless transac-tion is the VeriFone Vx 520. The other benefit to this unit is that it will also handle the new chip-card transac-tions, once the processors and the card brands finish the system chang-es to accommodate the “dipping” of cards to include the chip.

If you don’t have a contactless-ready terminal – that’s right now, not later after you disappoint your customers – then now is the time to consider upgrading. Reach out to our Customer Service team at 800.563.5981, option 2, to discuss how to upgrade your terminal.

5

Continued from page 1

October 2014

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• Relieves the potential burden of hav-ing to gather historical data pertaining to multiple locations and processors.

• Has experience working with the settlement administrator that is handling this settlement, so MCAG is familiar with the process to submit, track and reconcile claims.

• Obtains data directly from Michi-gan Retailers Association in advance of submitting the claim to ensure that the service submits a valid, timely and complete claim that is supported by correct data. Other competitors simply accept the settlement administrator’s estimate that is based on data supplied by the card organization, or they may try to obtain data after the claims peri-od has opened, leaving little or no time to ensure that an accurate and compre-

hensive claim is submitted.• The service is a comprehensive,

risk-free solution, because it is offered on a percentage of recoveries, with no upfront or hidden fees. If no money is recovered for a specific business, there is no charge or fee to that business.

Court ApprovalA U.S. District Court in New York

gave “final approval” last December 13 to the settlement in the lawsuit. How-ever, the settlement is under appeal.

While the claims process will not be-gin until all appeals have been settled, pre-filing data collection can proceed.

Full details of the service and access to the enrollment form are available at https://mcagvmc.com/portal (and enter processor code MRA100).

MRA offers help filing settlement claims

Sales climb during Buy Nearby event6 Michigan Retailer www.retailers.com

Continued on page 7

Scenes from across the state on

Get Caught Blue-Handed

Day.Photos by

David Trumpie

economists said.New jobs would be added through-

out the economy and not only in the retail sector.

Blissfield StartBuy Nearby Guy started Get Caught

Blue-Handed Day in the southeast cor-ner of Michigan. Led by Patricia Rayl, Blissfield Downtown Development Au-thority Main Street manager, the mascot and his “entourage” walked from store to store in the small downtown.

He also was accompanied by local celebrity Jocelyn Near, Miss River Raisin Festival 2014.

After Blissfield, the mascot moved on to Marshall, in south central Michigan, where numerous stores were holding Get Caught Blue-Handed Day sales.

Sales IncreasesMRA’s analysis showed some of the

largest sales increases for the day were at jewelry stores (up 15.2 per-cent), gift stores (up 10 percent) and restaurants (up 8.27 percent).


show their support. He credited Buy Nearby Guy with

driving up awareness. “Guy” is the campaign’s large, blue mascot shaped like a shopping bag in the form of the state of Michigan. He resembles the Buy Nearby logo.

The mascot, created by The Pa-rade Company in Detroit, was new this year. He was introduced to the public on July 23 and traveled thou-sands of miles and made dozens of appearances at stores, farmers mar-kets, festivals and community events prior to October 4.

Thousands of people posed for pho-tos with Buy Nearby Guy or saw him on the street and greeted him or waved.

“People understand and identify with the campaign’s message to invest in the companies that are investing in Michigan by building businesses here, creating jobs and supporting their communities,” Hallan said.

“It’s a message of more economic activity, more jobs and a better qual-ity of life for everyone in our state. We all win when we make our pur-chases in the communities where we live, work and visit.”

75,000 More JobsA study this past summer by East

Lansing-based Anderson Economic Group provided the campaign with specific numbers on the importance of Buy Nearby.

The research firm determined that if everyone who makes purchas-es from “remote sellers” – chiefly out-of-state, online only merchants – switched to buying nearby, it would generate an additional $9 billion in economic activity in Michigan and create nearly 75,000 new jobs in 2015.

Switching only one in 10 purchas-es would add nearly $900 million and nearly 7,500 new jobs. the

7


October 2014

Not all retailers rang up better year-over-year sales, of course. There were plusses and minuses throughout the state.

Geographically, businesses general-ly did better in the counties of Wayne, Washtenaw, Oakland, Genesee, In-gham, Berrien, Kent, Muskegon, Ottawa, Newaygo and the western Upper Peninsula.

“We’re looking forward to the day when nearly all retailers can ring up better sales on the first Saturday in October – as well as year-round – be-cause of the efforts of the Buy Nearby campaign,” said Hallan.

“We’re going to keep working to build the campaign and deliver the mes-sage. Our goal is to make Buy Nearby a household term and a guiding prin-ciple for everyone in Michigan.”

Future VisitsAlthough Get Caught Blue-Handed

Day is over for 2014, Buy Nearby Guy will continue to make appearances throughout the year to remind shop-pers to Buy Nearby.

Retailers, organizations and com-munities can request an appearance by filling out the online form on the BuyNearbyMI.com website.

by Kurt Dettmer


Continued on page 9


“EFT Guard is an automatic endorsement that will be added to new and renewal policies as of November 1, 2014.”

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Retailers Mutual is your Michigan company ...Large enough to protect you.Small enough to care.Close enough to Buy Nearby.

In today’s world, threats are both seen and unseen. You can install security systems to protect your property, family and employees, but how do you protect yourself from those phishing for your information to attack your finances?

If you have a commercial checking or savings account and bank online for convenience, you face a serious threat – and it’s likely you don’t even know it.

Federal banking Regulation E obligates financial institutions to reimburse retail (individual) bank-ing customers for online losses from unauthorized electronic transfers, but the protection does not extend to business banking customers. If a business uses online wire transfers, ACH or bill pay, and finds its account has been hacked, its financial institu-tion isn’t liable for the loss.

Uniform Commercial Code a4 stipulates only that banks provide “reasonable security.” Compound that with the business online banking agreement that you accepted in order to use the online programs and you could find yourself at a true financial loss with no recourse.

Consider these simple facts:• 85 percent of small to mid-size

businesses conduct online banking.• More than 12 percent of business

computers contain malware.• Small- to mid-size businesses are

increasingly targeted by criminals, ac-cording to the FBI.

• Losses create anguish, expense, resource constraints and potential failure of the business.

Retailers Mutual’s SolutionThis is where Retailers Mutual In-

surance Company comes to your aid.Retailers Mutual is partnering with

RGS, Limited LLC, a Michigan-based risk services company, to bring the EFT Guard solution to Retailers Mutual’s current and future workers’ compen-sation insurance policyholders.

EFT Guard is an automatic endorse-ment that will be added to new and

renewal policies as of November 1, 2014. EFT Guard provides several important benefits you won’t find in other carri-ers’ policies.

The benefits include: • First, a free educa-

tional resource center where you can use an assessment tool to determine your risk level.

• Second, free malware detection software to create a high level of se-curity and peace of mind.

• Third, and perhaps most im-portant to any business owner, is $100,000 in protection against un-authorized electronic funds transfer (Corporate Account Takeover). The protection begins with your renewal or new policy.

For more detailed information, visit www.royalgroupservices.com/retailerseftguard/.

Again, these protections will be added to existing policies at their next renewal. If you are not currently a Re-tailers Mutual policyholder, now is the time to consider this coverage – anoth-er added benefit of being a member of Michigan Retailers Association.

To find an independent agent near you, visit www.retailersmutual.com or contact Retailers Mutual at 800.366.3699.

Kurt Dettmer is senior vice president, insurance sales and business develop-ment, for Retailers Mutual.

now,” said William J. Hallan, chief op-erating officer and general counsel for both Retailers Mutual and MRA.

The proposal to change the com-pany’s corporate structure had the unanimous support of the Retail-ers Mutual Board of Directors and company management. State regu-lators gave conditional approval in April to the move, subject to sev-eral actions, including policyholder ratification.

The plans calls for Retailers Mutual to change from a mutual insurance

company to a mutual insurance hold-ing company. The new entity will be renamed Retailers Insurance Com-pany.

“The change should be seamless for the policyholders,” said Hallan. “But it will provide the company with greater structural, financial and strategic flexibility to respond quickly and decisively to changes in the mar-ketplace.”

He added, “Right now, Retailers Mu-tual’s corporate structure is inflexible

Insurance plan expects final ok

IT’S THE LAW

Are your employeeshurting you online?by William J. Hallan, MRA Chief Operating Officer and General Counsel

The scenario is simple: an em-ployee posts a negat ive com-ment about his or her employer on social media, and the employer fires the employee.

Does the em-ployee have a claim for wrongful termination? Perhaps more impor-tant, could the problem have been avoided in the first place?

In a prior It’s the Law column, I dis-cussed how retailers could manage their online reputations in the midst of negative customer reviews. After all, it seems far more likely that an external party would damage a retailer’s repu-tation than a retailer’s own employee.

Yet we live in a “share everything” society. We share where we are, what we are doing, who we are with and whether we “like it.”

In fact, not having a Facebook, LinkedIn, Twitter or Instagram profile raises suspicion.

Businesses are expected to have an online presence as a base level of authenticity. At the same time, there is no shortage of social media con-troversy. Almost every day, someone is apologizing for an inappropriate tweet. I’ll spare you the examples.

Termination Justified?Going back to the disgruntled em-

ployee, is termination justified? In a global sense, most employees

are at-will employees and can be fired at any time, for any reason, even if the termination is without cause.

However, the law says you cannot fire an employee because of the em-ployee’s race, gender, national origin, disability, genetic information or age.

Other exceptions to the general rule are if the employee has an employ-ment contract, if you are retaliating against that employee for exercising rights under federal or state law, or if you fire the person for complaining about an OSHA violation.

Otherwise, termination is legal. But firing an employee comes after the fact and doesn’t prevent a negative com-ment from bouncing around the web.

Be ProactiveIt’s clear that the social media ex-

perience is here to stay and can help enhance a company’s profile and reputation. While there are pitfalls, it makes sense to embrace the opportu-nity to connect with customers.

One step that employers can take to help communicate corporate princi-ples is to develop a social media policy that applies to all company employees. Below are some important guidelines taken from MRA’s own policy that you might want to consider as you develop a policy for your business. For simplic-ity, let’s call it the 123 Company: 1. Employees of 123 Co. are personally responsible for the content they publish online, whether in a blog, social media site or any other form of user-gener-ated media. Be mindful that what you publish will be public for a long time – protect your privacy and take care to understand a site’s terms of service. 2. Identify yourself. When dis-cussing 123 Co. or 123 Co.-related services, provide your name and, when relevant, your role at 123 Co. You must make it clear that you are speaking for yourself and not on be-half of 123 Co. 3. If you publish content online relevant to 123 Co. in your personal capacity, use a disclaimer such as this: “The postings on this site are my own and do not necessarily represent 123 Co.’s position, strategies or opinions.” 4. Respect copyright, fair use and financial disclosure laws. 5. Do not provide 123 Co. or an-other’s confidential or proprietary information and never discuss 123 Co.’s business performance or other sensitive matters publically. 6. Do not cite or reference owners, partners or agents without their ap-proval. When you do make a reference, link back to the source. Do not publish anything that might allow inferences to be drawn that could embarrass or damage an owner, partner or agent. 7. Respect your audience. Do not use ethnic slurs, personal insults, ob-scenity or engage in any conduct that would not be acceptable in the work-place. You should also show proper consideration for others’ privacy and for topics that may be considered ob-jectionable or inflammatory – such as politics and religion. 8. Be aware of your association with 123 Co. in online social networks. If you identify yourself as an employee of 123 Co., ensure your profile is con-sistent with how you wish to present yourself to colleagues and members. 9. Do not pick fights. Be the first to correct your own mistakes. 10. Try to add value. Provide worth-while information and perspective. 123 Co.’s brand is best represented by its people, and what you publish may reflect on its brand.

9


October 2014

Membership Services CornerQuick notes

o n k e y s e r -v i c e s . C a l l 800.563.5981 for credit card processing as-s i s t a n c e o r 800.366.3699 for other matters.

We v a l u e your membership and trust. Let us know whenever we can help you with your question or problem, no matter how large or small.

Credit Card Processing • This is the third year for an IRS tax-reporting mandate on all mer-chant processing organizations. Therefore, if we have incorrect

IRS information on file for you or your business, we mailed you a W-9 form. Please complete the form and return it at your earliest convenience to avoid an IRS 28 percent withholding. • To keep processing costs low, answer all prompts on the termi-nal, including AVS (street number and zip code), CVV (3-digit secu-rity code on the back of card), Sales Tax (sales tax amount only), PO Number (if you don’t use a pur-chase order number, the default would be the last four digits of the card number). • Pay close attention to each

by Penny Sierakowski, MRA Customer Service Department Manager

credit card receipt. If it reads “Amount Due,” treat this as a split-tender transaction and collect the remaining balance via another form of payment. • If you receive a “Re-Enter or Lost Communication” response when processing a transaction, please contact Customer Service so we can verify the transaction status before you continue to process. • Pin-Based debit transactions cannot be voided. • To protect your business against customer disputes, be sure to imprint and obtain a signature on all credit card transactions. • Guard against tampering. Con-trol access to your credit card processing equipment and only allow authorized people to handle your point-of-sale device. • Credit card terminals can support your store policies by printing them on the bottom of the receipt. Give us a call to find out about Footer Lines. • Please notify Customer Ser-vice of any tax ID or bank account changes. • On occasion, you may receive a phone call or email from one of our merchant processing partners – Control Scan (PCI Compliance) or TransFirst (processing). Both part-ners will be able to provide your Merchant ID number to validate who they are; therefore, please ask them to confirm your merchant ac-count information. • These terminals are no lon-ger PCI Compliant and need to be upgraded: Zon, Tranz, Omni, Hy-percom T7P, Nurit. Please contact Customer Service to obtain up-grade options. • Data security compliance is mandatory. You must complete an annual PCI Self-Assessment Ques-tionnaire to verify if your business is PCI compliant. Visit http://www.compliance101.com to begin the questionnaire.

Insurance plan expects final okand the company is limited on how it can grow and raise capital for re-investment. The new mutual holding company structure offers the best solution: it is still controlled by the policyholders, but its structure al-lows for the infusion of additional capital, which could be used to up-grade technology and operational efficiencies, improve claims manage-ment or develop new product lines.”

Retailers Mutual has been success-ful since it was established in 2006 through the conversion of Retailers

Fund, MRA’s self-insured group work-ers’ compensation program, Hallan pointed out.

The insurer has increased surplus and is consistently writing more than a million dollars in new premium each year – success unheard of while it was a highly restricted group fund, he said.

“The company’s success and solid potential led us to take that next step of changing the corporate structure,” said Hallan. “We expect the change to take place this fall.”

LOTTERY

by M. Scott Bowen, CommissionerPlayers Club free coupons benefit Lottery retailers

For nearly a decade, the Mich-igan Lotter y’s rewards program – now known as the Players Club – has provided additional value to players with incentives that

encourage ticket sales. Launched in July 2005, this program

has been updated several times to meet the changing needs of our play-ers and reinforce and expand interest and participation in Lottery games.

Today, about 630,000 of our shared customers are Players Club mem-bers. Research shows these members are some of the most loyal and active Lottery players.

Many members visit our Players Club website daily to enter non-winning tick-et codes and earn points. Those points may be redeemed for rewards, such as once-in-a-lifetime experiences and a chance to compete for $1 million on the $1,000,000 Play it Again game show.

The Players Club and its rewards benefit our retail partners. The most popular reward among Players Club

members is coupons for free play for various Lottery games.

These coupons range in value from $2 to $6, depending on the game. They are available to members once each month and typically sell out in 24 hours or less.

Players visit retailers to make initial ticket purchases, and these free play coupons prompt them to make a re-turn visit to a Lottery retailer.

Along with the repeat business, retailers earn their standard commis-sion for redeeming these coupons, and they also count towards their incentive goals.

The Lottery also offers players a chance to earn free play coupons by playing interactive versions of some their favorite games.

Currently, Cashword, Bingo and Di-amond Wild Time players may enter non-winning ticket codes and play an interactive game online for a chance to win Players Club points or free play coupons.

Retailers also earn a commission on those coupons and receive credit towards incentive goals.

In the 2014 fiscal year, players re-ceived a total of $1.1 million in free

play coupons, boosting retailer visits and sales for retailers.

Looking forward, our team is com-mitted to further enhancing and improving the Players Club program to continue building player loyalty and repeat business that helps Lot-tery retailers’ bottom lines.

Monopoly MillionairesThe Michigan Lottery is excited to

be part of the Monopoly Millionaires’ Club, a new multi-state game that is available in more than 20 states. Play-er interest is expected to be strong for the new game that offers three chances to become a millionaire with each $5 ticket.

Tickets were scheduled to go on sale Oct. 19, with the first drawing set for Oct. 25.

In addition to weekly drawings that could create a number of millionaires, Monopoly Millionaires’ Club also fea-tures a second chance game that will award lucky players with a trip to Las Vegas and an opportunity to compete for $1 million on a nationally syndi-cated game show.

Players must collect Monopoly property sets to earn entries into the

second chance drawing, which is ex-pected to encourage players to visit retail locations to purchase tickets each week.

The top prize for Monopoly Million-aires’ Club begins at $15 million and may grow to $25 million. Each time the top prize is won, there will be a minimum of 10 $1 million winners.

Once the top prize amount reaches $25 million, all additional prize money goes to fund more $1 million prizes, helping the game fulfill its goal of “making more and more millionaires.”

New Instants These tickets go on sale Oct. 28:IG # 708 – Winner Green – $10IG # 707 – Surprise Package – $5IG # 706 – Holiday Luck – $2IG # 705 – Holiday Cash – $1

About 95 cents of every dollar spent on Lottery tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers. In fiscal year 2013, the contribution to schools totaled $734.3 million. Since its inception in 1972, the Lottery has contributed over $18 billion to Michigan’s public education.


other incumbents: • Becky Beauchine Kulka, founder

and CEO of Becky Beauchine Kul-ka Diamonds and Fine Jewelry in Okemos. She has been a board mem-ber since 2011.

• Jim Walsh, adjunct professor of finance at Aquinas College and retired CFO of Meijer Inc. Jim has served on the board since 2007.

All were elected to three-year terms.Retailers Mutual also held its Annu-

al Meeting of policyholders on August 19 at MRA.

Policyholders re-elected three in-cumbents to the Retailers Mutual Board of Directors for three-year terms. They are Tom Ungrodt, who was first

elected to the Retailers Fund Board in 1992 and has served on the Retailers Mutual board since 2006, and:

• Rod Phillips, owner of Country Casuals, a small chain of year-round and seasonal ladies’ apparel stores located throughout northwest Michi-gan and headquartered in Petoskey. He was first elected to the former Retailers Fund board in 1999 and has served on the Retailers Mutual Board since it was established in 2006.

• Peter Sobelton, who began serv-ing on the Retailers Fund board in 1984 and has served on the Retailers Mutual board since 2006.

New RMIC OfficersJeff Joyce, vice president and co-

owner of Mieras Family Shoes, Grand Rapids, was elected chair of Retailers Mutual by the company’s Board of Directors. Mieras is a family owned company founded in 1922.

He succeeds Sobelton, who served as chair for two years with Joyce as vice chair. Joyce has served on the board since 2010.

Succeeding Joyce as vice chair is Mark Miller, executive vice president of Hylant Group and president of its Ann Arbor office. Hylant is among the largest privately held insurance

Association. Peter Sobelton, a former Birming-

ham retailer and board member since 1998, continues as treasurer. He has held that post since 2010.

William J. Hallan, chief operating officer and general counsel of MRA and Retailers Mutual Insurance Com-pany, continues as secretary. He was named to the position following the retirement of Jean Sarasin in July.

Annual MeetingsThe board elections followed MRA’s

Annual Meeting, held at MRA head-quarters in Lansing the same day. The Association’s members re-elected Marshall to the board along with two

brokerage firms in the nation. He has served on the Retailers Mutual board since 2012.

William J. Hallan, was elected sec-retary of the board, succeeding Jean Sarasin. He was named to the board earlier this year.

Retailers ServicesThe MRA board also re-elected all

three outside directors of the Michi-gan Retailers Services, Inc., board. MRS is the wholly owned subsidiary of MRA that provides the Associa-tion’s membership services.

Re-elected to one-year terms were:• Bo Brines, owner and president

of Little Forks Outfitters, an Orvis shop and retailer of quality fly fishing equipment and outdoor clothing, lo-cated in downtown Midland. He was first named to the Services board in 2011.

• Bill Golden, co-president of Golden Shoes, a family owned and operated shoe store in downtown Traverse City. He has served on the board since 2012.

• Lisa McCalpine-Wittenmyer, senior regional director, state gov-ernment relations for Illinois-based Walgreens. She was first named to the board in 2012.

NEW MEMBERS

11October 2014

Leslie C McLean Post #1454, AlmaENMET LLC, Ann ArborOur Lady of Grace Bookstore LLC, Ann ArborDominant Systems Corp., Ann ArborRonald McDonald House Charities of Ann Arbor, Ann ArborEmmaus Health PLLC, Ann ArborBarloc Trucking, Auburn HillsBig Will Trucking, Auburn HillsDitty’s Trucking, Auburn HillsAppino’s Trucking, Auburn HillsAdd Trucking, Auburn HillsJJM Trucking, Auburn HillsWee’s Trucking, Auburn HillsShafer Trucking, Auburn HillsJersey Boy Trucking, Auburn Hills8 Mile Furniture Delivery, Auburn HillsOtt Insurance Agency Inc., BarodaTasty Layers LLC, BurtonCedar Straits Radiology, CedarvilleJunction 95, ChampionHeavenly Helpers Home Health LLC, CharlevoixPlay It Again Sports, ChesterfieldWoods’ Household Appliances Inc., ClareAll Points Tire & Auto Company, Comstock ParkEric D Huffman Insurance Agency, DetroitPizza Mambo, DouglasEbels Hardware Inc., Falmouth


The Old Christmas Station, FrankenmuthDream Believe Achieve Triathlon, Grand RapidsLive Laugh Love 5K, Grand RapidsGlow In The Park Grand Rapids, Grand RapidsXterra GR, Grand RapidsRun or Dye Grand Rapids, Grand RapidsLace Up For Kids, Grand RapidsDirty Apple Run & Obstacle Course, Grand RapidsTiger Lily Triathlon, Grand RapidsHoney Creek Duathlon, Grand RapidsB Foundation Glow Run, Grand RapidsColor Vibe 5K, Grand RapidsRed Flannel Festival 5K, Grand RapidsRoyal Pallets Inc., GrandvilleCountry Pub, GregoryHolland Public Schools, HollandQ Top USA Inc., HollandExcel Tanning, HollandCrispheart Produce Inc., HudsonvilleJimmie’s Inc., JacksonRocky Top Beer BBQ, JacksonPappy’s Pub, LachineFootprints In Time, Lake CityPJ’s Towing LLC, LansingLapeer Dairy Queen, LapeerKing & Aloe PC, LudingtonRyan Family Practice, LudingtonTeknik Computer Repair LLC, ManisteeKincaid Properties Inc., Melvindale

MRA board elects officers; names Marshall new chair

McCalpine-Wittenmyer

Miller

Brines

Walsh

Golden Kulka

Phillips Sobelton Ungrodt

MazzoniHallan Joyce

Visit playmmc.com for more details.

In addition to the regular sales and redemption commissions, Michigan Lottery retailers will receive a payment of $50,000 on valid Top Prize winning tickets and $5,000 on $1 million Millionaires’ Club Prize winning tickets purchased at their retail location and redeemed for payment.

MAKING MORE & MORE MILLIONAIRES• 3 WAYS TO BECOME A MILLIONAIRE •

MONOPOLY © 2014 Hasbro.All Rights Reserved. Licensed by Hasbro.

Odds of winning: $5: 1 in 17; $7: 1 in 48; $10: 1 in 82; $20: 1 in 250; $25: 1 in 449; $250: 1 in 6,732; $500: 1 in 11,469; $20,000: 1 in 309,664; $100,000: 1 in 2,695,218; Top Prize: 1 in 72,770,880. Overall odds of winning: 1 in 10. Odds of winning a Millionaires’ Club prize depend on the total number of tickets sold by participating lot-teries during the week in which the Top Prize was won. A minimum of ten (10) $1,000,000 prizes will be awarded for each Millionaires’ Club drawing. If you bet more than you can afford to lose, you’ve got a problem. Call 1-800-270-7117 for confidential help.

$15 Million Up to $25 Million Top Prize!Every Friday at 11:15 p.m. ET a drawing is held for the Top Prize, plus nine other cash prizes ranging from $5 to $100,000.

$1 Million Millionaires’ Club Prize! When the Top Prize is won, a second drawing occurs for the $1 million Millionaires’ Club Prizes. At least 10, and possibly hundreds, of $1 million Millionaires’ Club Prizes will be awarded nationally when a Top Prize is won!

Win Up to $1 Million on the TV Game Show!Players receive a MONOPOLY Property each time they purchase a ticket. Properties are tracked and Property Sets are formed in each player’s account by entering the Webcode found on each ticket. The Property Sets are used to earn entries into drawings for a chance to win a trip to Las Vegas and a chance to become a contestant on the MONOPOLY MILLIONAIRES’ CLUB TV Game Show with a top prize of up to $1,000,000!

october 14 michigan retailer

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