CORPORATE ESPIONAGE

This will be one of the most comical posts I have ever written. I don’t watch enough reality TV, apparently, and missed a show on CBS called “Undercover Boss”. Apparently, the premise was for the boss to disguise himself and go into his own business, typically a retail establishment, and see what really goes on. In some variations, he would even get hired as a low level employee, only to reveal his true identity at the end of the episode.

Well, apparently, one CEO has taken this a step further. The head of Modell’s Sporting Goods is alleged to have appeared at a competitor’s store, Dick’s Sporting Goods, and allegedly told management that he was one of their vice presidents and was there to meet their CEO. Then he asked if he could go into the areas of the store that are not publicly accessible. Dick’s has sued Modell’s and its CEO, claiming that while in the backroom, he requested and was given access to their confidential information and trade secrets. Dick’s claims that Modell has stolen their inventory processes, pricing information, inventory quantity, store metrics, customer satisfaction scores, the marketing of their private label credit card program and after-market warranties, etc.

I am wondering how anyone could possibly accomplish this in a relatively short period of time but the ubiquitous flash drive might be the answer. The whole scenario sounds far-fetched.

However, let’s think about information that you want to claim as trade secrets. How are you storing this information? Do you have levels of passwords or restricted access which is limited to key employees? Have you obtained a consultation from a computer specialist on how to protect your critical data from unauthorized access?

Next, have you trained your workers? If someone identifies himself as a corporate executive, will they take this at face value? If so, consider a training module. Do you issue photo identification? Are your employees aware that they may not give access without authorization from management. Instead of being a competitor, that individual could be a Department of Labor investigator!!!! Generally, the Department identifies itself. However, if an investigator asks for a tour, your employees must know that you need to be notified ASAP and that they should not engage with the investigator. A scheduled date can be arranged. If the investigator asks to use the facilities, trust me, he is looking for more. Escort him and do not leave him unaccompanied for a moment except while in the rest room.

Trade secret infringement, impersonating a competitor and auditors on the prowl. Welcome to my world!