Issuu

Friends of Retail

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

Apple Pay a Game-Changer

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

Protection for Your Bank Account

Retailers Mutual will begin automatically providing all policyholders protection against their commercial bank accounts being hacked. Page 9

® October 2014 Vol. 39 No. 5

MRA offers help filing claims in $5+ billion credit card settlement 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 recoveries for eligible businesses. Although official claims forms are not yet available, businesses can act now to ensure that a proper and timely 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 Collection The MRA/MCAG Settlement Recovery 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. Continued on page 5

The official publication of the Michigan Retailers Association

www.retailers.com

Sales climb during Buy Nearby event Retail sales rose across Michigan on Buy Nearby’s Get Caught Blue-Handed Day, according to an analysis of Michigan Retailers Association members’

credit and debit card transactions. Although the weather in much of the state was cool, wet and blustery on Saturday, October 4, total sales

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

MRA board elects officers; names Marshall new chair Dan Marshall, president of family owned Marshall Music Co., headquartered in Lansing, was elected chair of the MRA Board of Directors for 2014-15 at its August 19 meeting. Marshall Music was established in 1948 by Dan’s Marshall

parents and has become one of the largest full-line music retailers in the country. The company operates stores in Lansing, Kalamazoo, Grand Rapids, Troy, West Bloomfield, 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 owner of two Michigan gift stores. Ungrodt served two consecutive one-year terms as chair, with Marshall as vice chair. Named as the new vice chair was Orin Mazzoni, Jr., owner of Orin Jewelers in Garden City and Northville. Mazzoni was first elected to board in 2007 and is a past president of MRA’s Michigan Jewelers Continued on page 11

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 relatives and “get caught” supporting their communities and Michigan’s economy. It was the campaign’s second annual Get Caught Blue-Handed Day. Sales also rose last year, by double digits on a warmer and more pleasant fall day. “We’re pleased by the overall results and wish to thank all of the shoppers and retailers who participated in the event. Although the weather didn’t cooperate, store owners and consumers did,” said James P. Hallan, MRA president and CEO. Greater Awareness Hallan said it appears more business people and consumers were aware of Buy Nearby and wanted to Continued on page 6

Insurance plan expects 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 Meeting 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 expect to receive DIFS’ signoff any week Continued on page 8

Michigan Retailer

Michigan embracing Buy Nearby Guy by James P. Hallan, MRA President and Chief Executive Officer Led by the friendly and loveable Buy Nearby Guy, MRA’s second annual “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 positive. Everyone loves the concept of supporting Michigan, and Buy Nearby Guy has traveled throughout 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 captures 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

www.retailers.com

Board of Directors: Dan Marshall

Chair Marshall Music Company, Lansing

James P. Hallan

President and CEO Michigan Retailers Association

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

Orin Mazzoni, Jr.

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

William J. Hallan

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. They can wave, engage in photo shoots, participate in community 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 weekends 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? The identity must remain secret and the code of silence must prevail, of course. But I can tell you that this summer and fall, the Buy Nearby Guy costume has been worn by six different individuals. And at every appearance, Buy Nearby Guy needs a “handler” to help him around obstacles and get through doorways designed for humans. After all, our mascot stands over eight feet tall, and we don’t want him to lose the U.P. to a store entrance, tree branch or 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

state, creating jobs, new investment and opportunity. One final thought before the mascot note. We all live in Pure Michigan because we choose to do so. It’s a wonderful place to raise a family and enjoy the beauty of our diverse seasons with good Midwestern folks who understand the values of hard work, decency and kindness. But as citizens invested in Michigan, 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 Retailers has endorsed Governor Rick Snyder and Attorney General Bill Schuette. Both have done much to move Michigan forward and have rightfully earned our endorsement. Now, as promised, a politics-free observation from our unnamed mascot, 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 ever yone 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 ar range 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!

Vice Chair Orin Jewelers, Garden City

Peter R. Sobelton Treasurer Birmingham

Secretary Michigan Retailers Association

Thomas Ungrodt

Past Chair Ideation, Ann Arbor

Brian Ducharme AT&T

Becky Beauchine Kulka

Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos

Joseph McCurry

Credit Card Group

Larry Mullins

Brandon Tire & Battery, Ortonville

R.D. (Dan) Musser III

Grand Hotel, Mackinac Island

Barb Stein

Great Northern Trading Co., Rockford

Joe Swanson Target Corp.

James Walsh

Meijer, Inc., Grand Rapids

D. Larry Sherman

Board Member Emeritus

Michigan Retailers Services, Inc. Board of Directors: Bo Brines Little Forks Outfitters, Midland

Bill Golden

Golden Shoes, Traverse City

Lisa McCalpine-Wittenmyer Walgreens

James P. Hallan Thomas B. Scott Publisher

Editor

Pat Kerwin

Design Manager

Publication Office: 603 South Washington Avenue Lansing, MI 48933 517.372.5656 or 800.366.3699 Fax: 517.372.1303 www.retailers.com www.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

MICHIGAN RETAIL INDEX

Index shows retail industry upbeat about fall sales at 52.8. The 100-point Index gauges the performance of the state’s overall retail industry, based on monthly sur veys 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-

Current

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

3-Month

13 -14

Performance Index

12-13

$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/michiganretail-index.html. The website includes figures dating back to July 1994.

13-14

Outlook Index

12-13

2013

2014

700 649

600

682 681 602

587

629

500 400 300

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FEB

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M o s t M i c h i g a n re t a i l e r s a re forecasting improved sales for fall, according 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 majority of retailers expect year-over-year gains for the next three-month period. August sales retreated after an exceptionally strong June and July, but retailers’ forecasts remained solid, according to the index. “We’re looking for ward to retailers’ forecasts for the holiday shopping season, given their optimism 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 survey of 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 adjusted performance index of 46.0, down from 74.9 in July. A year ago August the Index stood

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.

200 (millions)

Jun

Jul

Aug

Be sure to complete your online survey each month!

Michigan Retailer

www.retailers.com

MRA’s ‘Friends of Retail’ for November 4 election Michigan Retailers Association has endorsed Gov. Rick Snyder and Attorney General Bill Schuette for reelection on November 4. In addition, 77 incumbents and candidates for the Michigan Legislature have been designated by MRA as a “Friend of Retail.” The Association’s Board of Directors 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 relationship with both leaders. The designation as “Friend of Retail” is based on the lawmakers’ and candidates’ answers to an issueoriented 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)

9. 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-Monroe 19. 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)

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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)

October 2014

RETAIL TECHNOLOGY NEWS

Get ready for new world of Apple Pay technology 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 designation from the national Electronic Transactions Association. Apple’s muchanticipated announcements of the iPhone 6, iPhone 6+ and the Apple Watch rekindled enthusiasm for the company’s game-changing technology – as well as its marketing. Much of the public attention was focused on the long-rumored and soon-to-be-here wristband device. From the retail industry’s perspective, 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 transaction to be initiated without having the card (or in this case, the device) come in contact with your POS system 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 website crows: “Your wallet. Without the wallet.” Debate Settled Most terminals today are not enabled 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 demand 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 models, Apple sold nine million units the first weekend the hardware was available. Apple then sold another 30-50 million units each quarter. This means that in any given year, a significant number of your customers 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 Terminal We will, very shortly, have a large number of cardholders who will be carrying contactless credentials in their pocket. And, much like the sixyear-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 transaction is the VeriFone Vx 520. The other benefit to this unit is that it will also handle the new chip-card transactions, once the processors and the card brands finish the system changes to accommodate the “dipping” of cards to include the chip. If you don’t have a contactlessready 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.

MRA offers help filing settlement claims Continued from page 1

• Relieves the potential burden of having 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 Michigan 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 period has opened, leaving little or no time to ensure that an accurate and compre-

Looking for the best way to reach retailers in Michigan? Advertise in the Michigan Retailer. Rates as low as $35 per issue.

Call 800.366.3699 for more information.

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 Approval A U.S. District Court in New York gave “final approval” last December 13 to the settlement in the lawsuit. However, the settlement is under appeal. While the claims process will not begin 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).

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Michigan Retailer

Sales climb during Buy Nearby event Continued from page 1

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 Parade Company in Detroit, was new this year. He was introduced to the public on July 23 and traveled thousands of miles and made dozens of appearances at stores, farmers markets, festivals and community events prior to October 4. Thousands of people posed for photos 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 quality of life for everyone in our state. We all win when we make our purchases in the communities where we live, work and visit.” 75,000 More Jobs A 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 purchases 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 purchases would add nearly $900 million and nearly 7,500 new jobs. the

economists said. New jobs would be added throughout the economy and not only in the retail sector. Blissfield Start Buy Nearby Guy started Get Caught Blue-Handed Day in the southeast corner of Michigan. Led by Patricia Rayl, Blissfield Downtown Development Authority 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 Increases MRA’s analysis showed some of the largest sales increases for the day were at jewelry stores (up 15.2 percent), gift stores (up 10 percent) and restaurants (up 8.27 percent). Continued on page 7

www.retailers.com

Scenes from across the state on Get Caught Blue-Handed Day. Photos by David Trumpie

October 2014

Continued from page 6

Not all retailers rang up better year-over-year sales, of course. There were plusses and minuses throughout the state. Geographically, businesses generally did better in the counties of Wayne, Washtenaw, Oakland, Genesee, Ingham, 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 – because of the efforts of the Buy Nearby campaign,” said Hallan.

“We’re going to keep working to build the campaign and deliver the message. Our goal is to make Buy Nearby a household term and a guiding principle for everyone in Michigan.” Future Visits Although Get Caught Blue-Handed Day is over for 2014, Buy Nearby Guy will continue to make appearances throughout the year to remind shoppers to Buy Nearby. Retailers, organizations and communities can request an appearance by filling out the online form on the BuyNearbyMI.com website.

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RMIC adds protection for biz bank accounts

by Kurt Dettmer

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.

Retailers Mutual’s Solution This is where Retailers Mutual Insurance 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’ compensation insurance policyholders. EFT Guard is an automatic endorsement 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 carriers’ policies. The benefits include: • First, a free educational 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 security and peace of mind. • Third, and perhaps most important to any business owner, is $100,000 in protection against unauthorized 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 Retailers Mutual policyholder, now is the time to consider this coverage – another 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.

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

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Federal banking Regulation E obligates financial institutions to reimburse retail (individual) banking 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 institution 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, according to the FBI. • Losses create anguish, expense, resource constraints and potential failure of the business.

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Insurance plan expects final ok Continued from page 1

To learn more, ask your Independent Agent, call 800.366.3699 or visit www.RetailersMutual.com. 0414

now,” said William J. Hallan, chief operating officer and general counsel for both Retailers Mutual and MRA. The proposal to change the company’s corporate structure had the unanimous support of the Retailers Mutual Board of Directors and company management. State regulators gave conditional approval in April to the move, subject to several actions, including policyholder ratification. The plans calls for Retailers Mutual to change from a mutual insurance

company to a mutual insurance holding company. The new entity will be renamed Retailers Insurance Company. “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 marketplace.” He added, “Right now, Retailers Mutual’s corporate structure is inflexible Continued on page 9

October 2014

IT’S THE LAW

Are your employees hurting you online? by William J. Hallan, MRA Chief Operating Officer and General Counsel The scenario is simple: an employee posts a negative comment about his or her employer on social media, and the employer fires the employee. Does the employee have a claim for wrongful termination? Perhaps more important, could the problem have been avoided in the first place? In a prior It’s the Law column, I discussed 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 reputation 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 controversy. Almost every day, someone is apologizing for an inappropriate tweet. I’ll spare you the examples. Termination Justified? Going back to the disgruntled employee, 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 employee’s race, gender, national origin, disability, genetic information or age. Other exceptions to the general rule are if the employee has an employment 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 comment from bouncing around the web. Be Proactive It’s clear that the social media experience is here to stay and can help enhance a company’s profile and reputation. While there are pitfalls, it makes sense to embrace the opportunity to connect with customers.

One step that employers can take to help communicate corporate principles 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 simplicity, 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-generated 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 discussing 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 behalf 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 another’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 approval. 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, obscenity or engage in any conduct that would not be acceptable in the workplace. You should also show proper consideration for others’ privacy and for topics that may be considered objectionable 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 consistent 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 worthwhile information and perspective. 123 Co.’s brand is best represented by its people, and what you publish may reflect on its brand.

Membership Services Corner by Penny Sierakowski, MRA Customer Service Department Manager Quick notes on key services. Call 800.563.5981 for credit card processing assistance or 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 merchant 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 terminal, including AVS (street number and zip code), CVV (3-digit security code on the back of card), Sales Tax (sales tax amount only), PO Number (if you don’t use a purchase order number, the default would be the last four digits of the card number). • Pay close attention to each

credit card receipt. If it reads “Amount Due,” treat this as a splittender 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. Control 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 Service 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 partners will be able to provide your Merchant ID number to validate who they are; therefore, please ask them to confirm your merchant account information. • These terminals are no longer PCI Compliant and need to be upgraded: Zon, Tranz, Omni, Hypercom T7P, Nurit. Please contact Customer Service to obtain upgrade options. • Data security compliance is mandatory. You must complete an annual PCI Self-Assessment Questionnaire to verify if your business is PCI compliant. Visit http://www. compliance101.com to begin the questionnaire.

Insurance plan expects final ok Continued from page 8

and the company is limited on how it can grow and raise capital for reinvestment. The new mutual holding company structure offers the best solution: it is still controlled by the policyholders, but its structure allows for the infusion of additional capital, which could be used to upgrade technology and operational efficiencies, improve claims management or develop new product lines.” Retailers Mutual has been successful since it was established in 2006 through the conversion of Retailers

Fund, MRA’s self-insured group workers’ 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.”

Michigan Retailer

www.retailers.com

LOTTERY

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

For nearly a decade, the Michigan 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 players and reinforce and expand interest and participation in Lottery games. Today, about 630,000 of our shared customers are Players Club members. 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 ticket 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 return visit to a Lottery retailer. Along with the repeat business, retailers earn their standard commission 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 Diamond 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 received a total of $1.1 million in free

play coupons, boosting retailer visits and sales for retailers. Looking forward, our team is committed to further enhancing and improving the Players Club program to continue building player loyalty and repeat business that helps Lottery retailers’ bottom lines. Monopoly Millionaires The 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. Player 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 features 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 syndicated game show. Players must collect Monopoly property sets to earn entries into the

second chance drawing, which is expected to encourage players to visit retail locations to purchase tickets each week. The top prize for Monopoly Millionaires’ 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 – $10 IG # 707 – Surprise Package – $5 IG # 706 – Holiday Luck – $2 IG # 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.

October 2014

MRA board elects officers; names Marshall new chair Continued from page 1

Association. Peter Sobelton, a former Birmingham 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 Company, continues as secretary. He was named to the position following the retirement of Jean Sarasin in July. Annual Meetings The board elections followed MRA’s Annual Meeting, held at MRA headquarters in Lansing the same day. The Association’s members re-elected Marshall to the board along with two

other incumbents: • Becky Beauchine Kulka, founder and CEO of Becky Beauchine Kulka Diamonds and Fine Jewelry in Okemos. She has been a board member 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 Annual Meeting of policyholders on August 19 at MRA. Policyholders re-elected three incumbents to the Retailers Mutual Board of Directors for three-year terms. They are Tom Ungrodt, who was first

Brines

Golden

Hallan

Joyce

Kulka

Mazzoni

Miller

McCalpineWittenmyer

Phillips

Sobelton

Ungrodt

Walsh

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 Michigan 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 serving on the Retailers Fund board in 1984 and has served on the Retailers Mutual board since 2006. New RMIC Officers Jeff Joyce, vice president and coowner 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

brokerage firms in the nation. He has served on the Retailers Mutual board since 2012. William J. Hallan, was elected secretary of the board, succeeding Jean Sarasin. He was named to the board earlier this year. Retailers Services The MRA board also re-elected all three outside directors of the Michigan Retailers Services, Inc., board. MRS is the wholly owned subsidiary of MRA that provides the Association’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, located 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 government relations for Illinois-based Walgreens. She was first named to the board in 2012.

NEW MEMBERS Leslie C McLean Post #1454, Alma ENMET LLC, Ann Arbor Our Lady of Grace Bookstore LLC, Ann Arbor Dominant Systems Corp., Ann Arbor Ronald McDonald House Charities of Ann Arbor, Ann Arbor Emmaus Health PLLC, Ann Arbor Barloc Trucking, Auburn Hills Big Will Trucking, Auburn Hills Ditty’s Trucking, Auburn Hills Appino’s Trucking, Auburn Hills Add Trucking, Auburn Hills JJM Trucking, Auburn Hills Wee’s Trucking, Auburn Hills Shafer Trucking, Auburn Hills Jersey Boy Trucking, Auburn Hills 8 Mile Furniture Delivery, Auburn Hills Ott Insurance Agency Inc., Baroda Tasty Layers LLC, Burton Cedar Straits Radiology, Cedarville Junction 95, Champion Heavenly Helpers Home Health LLC, Charlevoix Play It Again Sports, Chesterfield Woods’ Household Appliances Inc., Clare All Points Tire & Auto Company, Comstock Park Eric D Huffman Insurance Agency, Detroit Pizza Mambo, Douglas Ebels Hardware Inc., Falmouth

The Old Christmas Station, Frankenmuth Dream Believe Achieve Triathlon, Grand Rapids Live Laugh Love 5K, Grand Rapids Glow In The Park Grand Rapids, Grand Rapids Xterra GR, Grand Rapids Run or Dye Grand Rapids, Grand Rapids Lace Up For Kids, Grand Rapids Dirty Apple Run & Obstacle Course, Grand Rapids Tiger Lily Triathlon, Grand Rapids Honey Creek Duathlon, Grand Rapids B Foundation Glow Run, Grand Rapids Color Vibe 5K, Grand Rapids Red Flannel Festival 5K, Grand Rapids Royal Pallets Inc., Grandville Country Pub, Gregory Holland Public Schools, Holland Q Top USA Inc., Holland Excel Tanning, Holland Crispheart Produce Inc., Hudsonville Jimmie’s Inc., Jackson Rocky Top Beer BBQ, Jackson Pappy’s Pub, Lachine Footprints In Time, Lake City PJ’s Towing LLC, Lansing Lapeer Dairy Queen, Lapeer King & Aloe PC, Ludington Ryan Family Practice, Ludington Teknik Computer Repair LLC, Manistee Kincaid Properties Inc., Melvindale

MAKING MORE & MORE MILLIONAIRES

• 3 WAYS TO BECOME A MILLIONAIRE • $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!

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. 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 lotteries 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.