For people looking to “solve” even the most personal and private affairs, now there’s online faxing. Online faxing actually happens to be extremely useful and cost-efficient in the workplace, but that doesn’t mean people won’t hide behind its efficiency for their own means. On Sting Levels from 1 to 10, here are the 9 worst messages you can receive via online faxing.

Miscellaneous Invitation

Sting Level: 1 (sometimes)

If you have a backbone, this probably won’t bother you so much as make you laugh. Did you seriously just get a wedding/birthday/baby shower/whatever invitation via online fax? You’re flabbergasted about the social etiquette of it all. But wait. Were you the only one who got a fax? Did everyone else get a personalized invitation?  Does this person just not want to waste an actual interaction with you? And there it is: the paranoia we’re talking about.

Proposal

Sting Level: 2

It might be weird to see something so positive on here — and trust us, it gets much worse — but this deserves a spot on the list. Marriage proposals usually make romantic stories, but don’t pretend you’d be disappointed if your hubby-to-be sent you an online fax saying, “Oh hey, can we get married, or something?”  Plus, with a proposal like that, you can probably expect a virtual engagement ring. Beyonce would not be pleased.

“Dear John” Letter

Sting level: 3

Some people don’t have the decency to break up in person, but they apparently have the time to write up a dramatic, tear-stained goodbye letter and fax it to their new ex. There’s something particularly cruel about receiving such a personal document via a professional communication medium. But hey, at least your former significant other went through the trouble of creating a hand-written note and scanning it instead of sending you an e-greeting. You must have had a somewhat influential impact on him or her!

College Rejection

Sting Level: 3

Oh, did you apply to this amazing college because it has the best program in whatever it is you’ve always wanted to do? You’ve been rejected.  Ouch.  Here’s the letter you didn’t actually read but merely scanned to find the words “sorry” or “regret.” Good luck, dear student, and try to ignore the irony when the school wishes you the best in your academic endeavors. Also, ponder this: how did the university know where to fax this to? Cue Twilight Zone music.

Loan Rejection

Sting Level: 4

You requested a home loan so you can start your life with your beautiful new wife or husband, but you just found out via fax that because your credit blows, you’re out of luck. We feel for you, friend, and we suggest you print out this online fax, step outside for a moment, and rip it to shreds Wolverine style. It’s really cathartic.

Job Rejection

Sting Level: 4

Applying for your dream job is always an emotional risk, but it’s always good to take it. So you fill out tons of forms and create dazzling resumes and portfolios to meet every one of the company’s demands. But, as it turns out, they’ve decided to go with a different candidate who more closely fits the position. We’re pretty sure the ratio of application documents to rejection documents is 43:1. Let’s just hope they let you online fax your application so you didn’t kill a quarter of the Amazon rainforest for their consideration.

Anything Money Related

Sting Level: 6

There’s nothing worse than finding out you owe a ton of money or will now have to pay more for something. We all dread getting bills, but messages from banks or landlords saying you owe them or letters from the IRS are quite the buzzkill.  Of course, receiving this information via online fax at work is bound to totally distract you, which makes you less productive, which means you might get paid less. Again with the irony!

Pink Slip

Sting Level: 7

Your boss’s office might be right down the hall, but you know, he’s busy, and walking over to your desk takes time. The fax saying your services are no longer needed at the company is probably not the best method for communicating this sort of thing, but at least you’ve been newly inspired to start faxing out your resume!

Divorce Papers

Sting Level: 10

Life is pain for you. Things have been rough with your spouse lately, but apparently he or she wants to call it quits. If that wasn’t bad enough — your spouse clearly doesn’t realize that divorce papers must be mailed or delivered by someone in person. Or maybe your spouse is just a Grade A jerk and just wanted to give you a heads-up while at work, in which case, you probably deserve better, anyway!

Conclusion

 Whether it’s bad news in general or just something completely ridiculous to send via online fax, we hope none of these messages ends up in your inbox. Also, always remember when you’re about to send out an online fax — only give what you wish to receive!

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Shoes are especially difficult to coordinate during fall and winter. Having tons of adorable sandals and even flats might not get you anywhere in the colder months — or will it? This article will discuss the major shoe faux pas for winter work wear and point out a few of the exceptions. Sit back and relax as we walk you through the fashion basics.

Men

 That’s right, guys — you’re not off the hook! In fact, you may even have a harder time sporting the right footwear at work, and we’ve seen some tragic examples.

Faux Pas 1: Wearing sneakers or dress shoes. The latter doesn’t necessarily apply if you’re working in Miami, Oahu, or any spring break location, but if you’re in wintery areas, snow won’t show your leather dress shoes any mercy.

 Dress shoes might not be a smart way to go, but sneakers are just unacceptable in the workplace. We know if one of your daily activities involves fighting off frostbite, it might be tempting to throw on some sneakers and socks and run to work Forrest Gump style just to keep your toes warm. Trust us: there’s a better way.

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When your commute involves potential snow sloshing, make sure you own a pair of sturdy but professional-looking boots. Which brings us to our next faux pas….

Faux Pas 2: Wearing rugged boots. So you’ve heeded our advice about the first faux pas, but your boots look straight out of a John Wayne movie or an episode of Ax Men. Don’t just pick up any pair of boots and call it a day; the pair has to be comfortable, sensible, and professional, which is a tricky trifecta to find. So tricky, in fact, that there’s a whole article in The New York Times about it.

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Once you’ve tracked down the perfect pair, make sure you use common sense about how to pair boots with suits. If your boots lean toward the casual side, wearing them with a sharp, perfectly tailored suit might look a little odd. Look in the mirror, and if you can play the what-doesn’t-belong-in-this-picture game, try again.

Faux Pas 3: Making waterproof too chic. If you’re panicked about Faux Pas 2, this will offer you a bit of relief. You don’t have to sacrifice all of your masculinity for the sake of workplace etiquette. It’s unnecessary to search far and wide for a professional boot that’s also waterproof (and also unadvisable).

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An Esquire writer recommends purchasing a pair of rubber Wellingtons. Now that’s not so bad, is it?

Women

 Okay, ladies, it’s time to analyze your wardrobe and kick out some summer essentials. It’s tough to leave that adorable pair of flat sandals behind, but they’ll be there in spring!

Faux Pas 1: Wearing the wrong kind of tights with the wrong kind of shoes. In the past, it’s generally been considered a total no-no to wear pantyhose with open-toe shoes, which pretty much kills the attempt at making summer shoes work as winter shoes.

Generally, this is still the case, but some fashionistas are now saying it’s acceptable to wear this combo in certain circumstances. For example, wearing opaque tights looks exponentially better than nude tights, and wearing these opaque tights with peep-toe shoes or thick heels are your best bet.

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But Ladies, a recent Adecco survey found that 31% of the men and women polled found open-toe shoes to be inappropriate for the workplace in summer. We’re going to bet this opinion intensifies in winter.

On top of all this, wearing pantyhose with flats or summer sandals is a fashion crime akin to wearing a beer hat to a meeting.  Just FYI.

Faux Pas 2: Trying to make flat sandals work for winter. Maybe you just bought the perfect pair of sandals a week before winter arrived, and you’re mourning the lack of time you spent showing them off. It happens. Don’t let your sorrow blind you! When it’s cold, flip flops and sandals just don’t cut it anymore. They leave your skin exposed and usually give off the summer vibe. Wearing sandals with your winter outfit is just like wearing boots with a short skirt. (Don’t get us started.)

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However, like every good rule, there are some exceptions. You can pull off heeled sandals with thicker straps that are made from wintery materials like leather, and you can attempt pairing them with opaque tights. This would be the only acceptable combination discussed in Faux Pas 1. This only works on a case-by-case basis, though, so take a look and use discretion. Also remember to check that open-toe shoes are acceptable in your workplace to begin with.

Faux Pas 3: Wearing white shoes, boots, or pantyhose. If you want to look like a Smurf or a Spice Girl, go for it. If not, it’s pretty difficult to pull this off. It can be done — anything is possible! — but as a general rule, avoid the tackiness of white shoe wear.

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The fashion value of white pantyhose is still debated, but regardless of its acceptance rate, white tights are seldom flattering and call nurse and school girl imagery to mind. It’s just not worth it.

It’s tough to keep warm and stylish, especially in the workplace, but these faux pas can be avoided.  Keep in mind that styles are always changing, as well, which increases the difficulty. For example, we wanted to create an entire Faux Pas section about never wearing Crocs (especially the hideous ones with fur lining), but we realized they’ve come out with a few lines of shoes that actually look pretty decent.

If we can’t hate Crocs unconditionally, what can we hate?

Multi-million album seller and 27 year old Grammy Award winning artist Amy Winehouse has died. She was found in her London home by police.

RIP Amy Winehouse.

The best places to network let you meet people under positive auspices. You share a common cause. You’re there because you want to be, not because you feel like you have to. The premise of the event makes it easy to break the ice. You can come back to these places again and again, making closer connections and building trust. Where are these places, and how do you find them? Here are 25 of the best ones.

Meetups

Browse Meetup.com and find groups that interest you. Then start attending meetups. See which ones you like best. Stick with those and you’ll make connections, guaranteed. Sharing a common interest makes bonding easier than at a deliberate networking event, where connections can be shallow (Meet. Give business card. Follow up. Forget about connection). A Meetup connection, if you stick with it, will be deeper and more involved.

Religious Events

Image: Master Hsin Tao/Flickr

Whether you go to a synagogue, mosque, church, zendo, ashram, or any other belief-based group, you will meet new people at your place of worship. A shared belief system like religion is an incredibly powerful unifying force. It makes you feel like you’re part of a group, tribe or something special. This exclusionary aspect solidifies the bond between members of the belief-based organization. In other words, if you share a religion, it’s easier to trust someone, open up to them, and want to help. Networking under such auspices is ideal.

Exercise

Image: Jon A. Ross/Flickr

Whether you do team sports or individual sports done in a group, like a running club, exercise is an excellent way to get to know people outside of the context of work. Playing together—or, in the case of endurance sports like road biking, suffering together—builds camaraderie and respect between members of the group. Icebreakers and elevator pitches aren’t quite as stressful when you’re sweating with people.

Hobby Clubs

Image: Teo JPG/Flickr

As in, the paper airplane flyers club, the roller skaters’ club, the clubbing club. If you have a hobby, why not see if there’s a local club of people who do the same thing? That way, you can share tricks and tips. You can also find out who they are and what they’re about in the process.

Arts

Image: st0rmz/Flickr

Mingling over creativity peppers fun into the networking process, as well as providing an instant icebreak. This category could include improv comedy, knitting clubs, scrapbooking, life drawing, and any other creative form that you can do with other people. The more conversation and interaction, the better.

Coffee Shops

Image: Stepheye/Flickr

Some coffee shops are hotbeds for million-dollar deals and corporate types. Others are full of creative types. Depending on what kinds of clients (or employers) you’re looking for, you might want to stake out a coffee shop near you that they frequent. Become a regular. Get to know people. Next thing you know, you’ll have an assignment in your lap, along with a bunch of new contacts.

Neighborhood Groups

Image: Nicola since 1972/Flickr

This one can be a little trickier. Although homeowners’ associations and neighborhood watches can be hotbeds of contention and paranoia, you can’t deny that you get to know the people in them when you participate. Whether you like them or not is another issue. A better alternative might be a productive neighborhood project, like organizing a block party, or setting up shared child or pet care between yourself and your neighbors. The key is to be likeable, not like that cretin next door.

Pets

Image: Donnaphoto/Flickr

Love shi-tzus? Joining your local shi-tzu club and fawning over other fuzzy beasts may just be your ticket to getting to know people easily and harmlessly. There are also dog training classes, agility courses, therapy pet associations, or even the good ol’ dog park. It’s hard to have your guard up when you’re being distracted by galloping, wagging, fur-covered animals. Note: This technique is probably significantly harder for people with cats.

Conferences

Image: Boellstiftung/Flickr

A conference is the perfect place to walk up to strangers, get to know them, and swap information speed-dating style. If you’re slower to approach people, giving a presentation or speaking on a panel are good ways to have people approach you. The same is true if you man a booth—they’ll ask you the questions, and you’ll be more visible to everyone. Many conferences also have times set aside for themed networking.

Retreats

Image: Anita K. Hart/Flickr

Retreats throw you into a common area with 5, 10, or 500 people with the same interest or goal. You’re with one another from one day to several weeks. With that kind of intimate setting, it’s hard not to find out who people are, what they can do, and how you might be able to help one another.

Ethnic or Gender-Based Clubs

Image: Steve Cadman/Flickr

Often, sharing a common heritage makes it easier to find both common ground and trust. Clubs based on heritage abound, from the Sons of Norway to the Mexican-American Business and Professional Women’s Association. That latter item brings up the second point, which is that gender can also be a common link. It’s probably easier for women to find gender-based clubs and organizations, but there are plenty of official and de facto male organizations out there, too. The bottom line is that you can make easy friends based on who you are and where you came from.

Classes

Image: dcJohn/Flickr

If you’re learning something along with everyone else, breaking the ice almost becomes a non-issue. Maybe you need that person to help you understand a concept, borrow a book or materials, arrange a study group, or lament about the material. Often, the class teacher can also be a good person to network with.

Social Media

Image: Birgerking/Flickr

Social media can be a mixed bag. On the one hand, you can waste days reading and posting mundane updates. On the other hand, if you link up with the right people and engage your friends or followers, social media can be a gold mine. You can find jobs, business partners, business opportunities, services you need, a dogsitter, and much more. The opportunities are limitless. You just have to approach it strategically and continually engage.

Volunteer Work

Image: Seattle Municipal Archives/Flickr

In general, people don’t volunteer because they want to be slick or rip you off. Volunteering, rather, comes out of a soft spot, be it empathy, aspirations, or passion for change. A nonprofit or other volunteer event sets a premise based on those feelings. That makes it easier to bond with other volunteers over a common cause, even if your background, religion and politics are polar opposites. The bonus with volunteering is that it makes you feel good, so you’re more likely to be approachable. And you get an overall mood booster, regardless of who you network with.

Alumni Events

Image: Svadilfari/Flickr

High school reunions are debatable as networking opportunities, but alumni events span more than just the old 20-year catch up. College is a good place to start. College alumni events, breakfasts, receptions, alumni sports games, alumni interest groups, and alumni databases are better ways to connect under a common umbrella. You can also give talks at events, making yourself and your pitch more visible.

Trade Shows

Image: ThinkGeoEnergy/Flickr

Trade shows exist in part for networking. They are an easy and obvious place to meet people relevant to your field. If you want people to come to you, man a booth, otherwise spend time exploring other peoples’ stations and networking along the way. The tricky part is staying in touch with people after you’ve dropped your business card. Follow-up emails and social media connections work well for this purpose.

Music

Image: Tuppus/Flickr

Music, whether you play or listen, has a wide array of networking possibilities. From playing in a band to religiously attending certain concerts, from music festivals to the symphony, opportunity abounds for finding people with interests like yours.

Chambers of Commerce

Image: CapeLawOffice/Flickr

Your local Chamber of Commerce probably hosts classes and talks as well as networking events. It’s the kind of place you meet a lot of people and gather a lot of cards. Following up and truly connecting, however, can be a numbers game here. Everyone wants to know everyone, but those quality connections are harder to dig up. Teaching a class, giving a talk, or getting involved with a Chamber effort are better ways to guarantee those close connections.

Associations

Image: Michigan Municipal League (MML)/Flickr

This category could cover the AARP, the NRA, AOPA, or anything with the word “association” somewhere in the title. Even if the club isn’t exclusive, you share the common bond of membership. In networking, that can be worth a lot. The trick is to attend the association’s events and meet new people.

Leads Groups and Networking Events

Image: Eric Richardson/Flickr

These groups can provide you with a shoebox full of business cards and no contacts if you’re not careful. If, however, you have a strategy in place to follow up with your leads and make them closer connections, leads groups and networking events can be really useful.

Online Forums

Image: Wonderlane/Flickr

Online forums are places to ask questions about and discuss topics of interest. Becoming a regular on a forum, or becoming a moderator, gains you recognition by the other people that frequent the place. This opens the doors for you to get to know one another more personally. Since many people prefer to stay anonymous on forums, this approach requires more persistence than some of the others listed here.

Blogging

Image: kpwerker/Flickr

Blogging can be a fantastic way to get to know people with common interests. You can easily find a community of like-minded bloggers on the web. Acquaint yourself with them by reading their posts and becoming a regular, proactive commenter. Facebook, Twitter and other sources of social media are your friends in this endeavor, too. Before you know it, you’ll be swapping emails and have made new online friends.

Toastmasters

Image: Kevin Collins/Flickr

Toastmasters deserves its own category. Facing one of humanity’s deepest fears, public speaking, with twenty or so of your supportive new friends is an excellent way to network. Everyone’s motivated, and almost everyone is probably scared, too. There are lots of opportunities to share—in fact, it’s part of the program’s template. Networking doesn’t get much easier than this, save for the public speaking part.

Speeches and Talks

Image: Ian Wienand/Flickr

Attending a speech given by your favorite politician, a talk by your favorite author or astronomer, or any other event involving a person you really like standing up and speaking at a podium can be a good networking opportunity. Everyone listens to the same thing and has the same interest. You can chat up people sitting next to you before and after the event. You can approach the speaker after the event and say hi to other people waiting for autographs, for example. (It helps to be outgoing in this setting.)

Where Connectors Are

Image: Hase/Wikimedia

Some people have huge networks. Whenever you mention that you need something, such “connectors,” as Malcolm Gladwell called them in The Tipping Point, will automatically link you up with someone in their network who can help you out. That’s just the way they think. Get to know these people and stay in touch with them. You could find them anywhere, in any club, at any event. Make it a habit to gravitate towards them like they’re lemonade on a hot day.

I can relate. I get a whole bunch of newsletters. A number of them disappear into my spam folder; I have labels for others–and I never jump into the trenches to actually read them. I generally don’t unsubscribe because a) I’m too lazy, b) I think the newsletters might be useful some day (hoarder mentality), or c) the marketing software behind the newsletter makes it impossible to opt out (the diabolical strategy).

I do read a couple of newsletters. One of them only comes quarterly, but is so rich in useful information that I feel like I’ll be missing something if I don’t read it. Another has essential resources for my field, and comes every two weeks. Another one I open sometimes, because I know exactly what to expect from it, and I read its information if I feel the subject is something that could be useful.

In online marketing, newsletters are seen as valuable tools, yet in my experience the minority of people use them right. Why are companies so excited about their newsletters? We already know what they do wrong, but what works?

Why Companies Want Newsletters

“Newsletter guru” Jim Palmer writes that:

1. Newsletters increase brand awareness.
2. Newsletters help build relationships with customers and potential customers.
3. Newsletters are an awesome way to introduce new products or services.
4. Newsletters can enhance your reputation as an expert in your industry.
5. Newsletters have a longer shelf life than other types of marketing have.
6. Newsletters are often read by multiple readers.
7. Newsletters are a great way to differentiate yourself from larger businesses, which typically don’t do a customer newsletter.

Sounds decent enough. But what makes consumers actually open newsletters? How do you harness them?

Online marketing expert Bryan Eisenberg, who has excellent input on the topic, says that “the real value of a good list is the participation it stimulates between the subscriber and your business…Worthwhile interaction truly engages your audience.”

He also writes:

* When people opt in, treat it like a sacred trust. Their time (and yours) is extremely valuable.

* Ask yourself: would you want this e-mail in your inbox? Be brutally honest.

He also says to set up expectations right away. Send a welcome email to every subscriber making it very clear how often you send the newsletter, and what you write about. He says to kick unengaged subscribers off your list periodically (send them an email to re-opt in if they haven’t been active in 3 months or so). That way, you cultivate a newsletter that’s useful to your most engaged readers, who are the ones you really care about anyway.

Does the Business Pundit newsletter measure up?

We do a summary newsletter, which Blue Sky Factory says provides “attention generation hub if your source content is valuable.” It’s basically a sum-up of what happened in business this past week, plus our best tips, humor posts, interviews, and book reviews from that week.

Would I want to read it? Yes, I love good news summaries, because I don’t have time to catch every major detail during the week (not for business, but in terms of international politics, science, and other topics that we don’t focus on here).

Is there fluff? Nope, unless you consider the stuff that’s on the blog fluffy. The missing link here seems to be letting go of unengaged subscribers, and giving existing subscribers more options on how they receive their emails.

We’d also like more feedback on the kind of newsletter that works best for our business-minded audience. I provide you with what I would want, but I’m not 100% certain that’s what you’d want, too. Please leave feedback in comments below so that I can get a better idea of how to create a newsletter that you’ll love.

Need to know more about President’s Day? Check out these 5 facts that will help you figure out its origin, what’s closed, and what President’s Day is all about:

5. What’s closed:

Post offices
Schools and universities
Financial markets
Most federal, state, and local government offices
Libraries
Public transit may run on a special schedule; check with your city
Some banks are closed; check with yours

4. First made official to celebrate George Washington’s birthday, the holiday is officially called “Washington’s Birthday.” In the late 1970s, it was unofficially adapted to celebrate all presidents. Nixon declared that the holiday should take place on the third Monday in February. As a result, many people call the holiday “President’s Day.” George Washington’s actual birthday is on February 22.

3. Some states have different celebrations for President’s Day. Alexandria, VA celebrates a tribute to presidents for an entire month. Arkansas also holds Daisy Gatson Bates day on President’s Day (Bates was a civil rights leader). The state of New Mexico observes President’s Day on the Friday after Thanksgiving.

2. This year, George Washington turns 279 years old.

1. If he had been around in this day and age, Washington may have seen the financial crisis coming. As he once said, “few men have virtue to withstand the highest bidder.”

On its February 11 show, This American Life dug up a recipe from 1979 newspaper article that claimed to be the secret formula for Coca-Cola. Coke, of course, denies the claims. From Time:

“It has been quite a day,” Kerry Tressler, a company spokeswoman, told the Los Angeles Times on Tuesday afternoon. First came the stories about the radio program cracking the drink’s code. Then came the stories about the wave of stories about cracking that code. Tressler said several journalists approached her assuming that the formula had been revealed, and prodded her to capitulate. But she had her red-and-white shield drawn and this line at the ready: “Our formulation is our company’s most valued trade secret, and we will not be coming forward with that formula.”

Mooney suggests that there’s a psychological element to Coke’s success—one rooted in 125 years of advertising, marketing and childhood memories. With that in mind, perhaps it’s best if we don’t know the recipe. Perhaps it’s secrecy—not specific measures of lemon oil—that makes it go down so easy.

Exactly. Remember that movie “The Secret”? It was impossible to know what the movie was about before you watched it, and, regardless of its actual quality, the movie created incredible marketing hype. In fact, many people who had seen it wouldn’t tell you what it was about, because they’d bought into its “secret.” Coke’s exposed secret (or not) is creating similar hype around the drink.

Coke’s recipe, codenamed “Merchandise 7X,” used to be kept in a bank vault. The fact that nobody can reproduce Coke’s flavor is a big part of what makes Coca-Cola a billion dollar company. Heck, it might even be a good marketing move for the company to “reveal” its recipe every 25 years or so, get people interested again.

Here’s the secret recipe, in case you want to go there:

Fluid extract of Coca: 3 drams USP
Citric acid: 3 oz
Caffeine: 1 oz
Sugar: 30 (unclear quantity)
Water: 2.5 gal
Lime juice: 2 pints, 1 quart
Vanilla: 1 oz
Caramel: 1.5 oz or more for color

The secret 7X flavor (use 2 oz of flavor to 5 gals syrup):
Alcohol: 8 oz
Orange oil: 20 drops
Lemon oil: 30 drops
Nutmeg oil: 10 drops
Coriander: 5 drops
Neroli: 10 drops
Cinnamon: 10 drops

False accusations can do irreparable damage to the reputations of major corporations. These companies often have to pay fines to restore their good names, to say nothing of the costs incurred due to advertising campaigns to regain the public’s faith.

From Taco Bell to Toyota, many corporations have been forced to shell out big bucks due to false accusations made about their products. Here are five of the most memorable incidents.

1. Toyota

LOSSES: Up to $5,548,800,00.00 ($5.55 Billion)

After the storm, the amount of damage to the brand is often unknown.

False Accusation: Faulty electronics caused certain Toyota cars to accelerate out of control, contributing to at least 50 deaths.

The Truth: NASA released a statement reporting that allegedly ‘sticky’ accelerator pedals, which led to a recall of nearly eight million cars last year, were not in fact the result of faulty electronics.

“We enlisted the best and brightest engineers to study Toyota’s electronics systems, and the verdict is in. There is no electronic-based cause for unintended high-speed acceleration in Toyotas,” said US Transportation Secretary Ray LaHood.

I’m guessing these guys know a thing or two about engineering.

Cost to Company: According to Huffington Post, the recall cost the company between $2 and $5.5 billion, due to a combination of lost sales and repairs. On top of that, the company was also fined $48.8 million by the U.S. government.

2. Taco Bell

LOSSES: More Than $8,900,000.00 ($8.9 Million)

False Accusation: “Your ‘beef’ is only 36% beef!”

The Truth: Last month, Alabama law firm Beasley Allen filed a class action lawsuit against the fast food chain, alleging that their beef taco filling was only about 1/3 beef, with the rest of the mixture containing fillers like “isolated oat product” and “autolyzed yeast extract.”

Taco Bell immediately launched a counter-suit, taking out a full page in several major newspapers that read, “Thank you for suing us.” The company has stated that their seasoned beef filling contains “88% Beef, and 12% Secret Recipe.”

Perhaps paying for celebrity visits will bring back the customers.

Cost to Company: The company just launched a promotion to give away ten million free tacos, prompted by the recent “Where’s the beef?” allegations.

A crunchy beef taco usually costs 89 cents, meaning the company is giving away the equivalent of $8.9 million. And don’t forget the cost of taking out ad space in the Wall Street Journal, the New York Times, and USA Today.

3. Wendy’s

LOSSES: Up to $21,000,000.00 ($21 Million)

Once you wonder what’s in the chili, the company has already lost.

False Accusation: In 2005, a woman in Northern California told authorities that she found a severed finger in a bowl of chili at Wendy’s.

The Truth: The woman, Anna Ayala, made it all up in an attempt to extort money from the fast food chain. She bought the finger from a man who had lost it in an accident, and then staged the event. Police sorted out the truth, and Ayala spent four years in jail.

Clearly the scheme went the way she had planned.

Cost to Company: Wendy’s International Inc.’s earnings dropped one percent in the second quarter of 2005. That may not seem like a lot, but when you are the third-largest burger chain in the US, one percent of your revenue is a significant chunk of change.

For the first six months of 2005, profits fell to $122 million, compared to $124 million in 2004. And other estimates say that Wendy’s may have lost as much as $21 million in revenue due to the incident.

4. Pringles/Proctor & Gamble

LOSSES: Unknown

Support of Satan, or the creation of bored viewers?

False Accusation: P&G subsidized Satanic cults.

The Truth: The rumor about Satanic subsidies was started by four rival distributors. The matter lingered in a court case that took 12 years to resolve, but eventually the false rumor was dispelled and P&G was awarded $19 million.

As if the first “example” wasn’t a big enough stretch, here’s a second.

Cost to Company: There’s no word on how much revenue was lost due to consumers who believed the story about Satanic cults, or how much P&G paid its legal team for 12 years of courtroom battles.

Based on some of the other costs above, however, it seems reasonable to guess the company lost at least a few million dollars over that 12-year period.

5. McDonald’s

LOSSES: Unknown

Consider how long this image will stay with you, for example.

False Accusation: During the infamous “McLibel” case, which ran for over a decade in Europe, McDonald’s was accused of a number of outrageous activities. Members of London Greenpeace claimed the following statements about McDonald’s business practices were true:

• buys from greedy rulers and elites, practicing economic imperialism;
• destroys rainforests with poisons and colonial invasions;
• alters its food with artificial chemistry;
• exploits children with its advertising;
• poisons customers with contaminated meat.

The Truth: In 1997, the courts ruled in favor of McDonalds, awarding the company £40,000 (about $64,000 in U.S. currency). The company never claimed the money. Later, members of London Greenpeace continued the court battles.

In 2005, the matter finally came to a close. The controversy spanned a total of twenty years, between a decade of courtroom battles and the additional years spent in appeals and higher courts.

Cost to Company: McDonald’s reportedly spent “millions of pounds” to defend themselves against the McLibel accusations. No firm figures exist for how much the company may have lost in potential sales due to the bad press surrounding the court cases, but over a twenty-year period, those figures could have been in the tens or hundreds of millions.

Conclusion

The next time you hear a story about a major corporation’s flaws, take a moment to think about all of the false accusations above. No corporation is perfect, but it’s important to take every negative news story with a grain of salt.