Now the videos are available to anyone who wants to see them —for a price. Lawyers, reporters, activists and journalists are lining up at the production company's tiny new office, cash in hand.
From the WSJ:
They sold their 20,000-square-foot production facility and moved into an 800-square-foot rented office. They now hope to sustain the company by selling access to the Wal-Mart videos. They charge $250 an hour for video research, and additional fees for a DVD copy of film clips.Other revealing moments include: "A former executive vice president and board member challenges store managers in 2004 to continue his work opposing unionization. Male managers in drag lead thousands of co-workers in the company's corporate cheer. In another meeting, managers mock foolish or dangerous use of a product sold in its stores. In 1991, founder Sam Walton describes Hillary Clinton, then a Wal-Mart director, as "one of us."Plaintiffs attorney Diane M. Breneman stumbled across the videos while working on a lawsuit she filed in 2005, on behalf of a 12-year-old boy, against Wal-Mart and the manufacturer of a plastic gasoline can sold in its stores. Her client was injured when he poured gasoline from the container onto a pile of wet wood he had been trying to light, and the can exploded. The lawsuit alleges that the containers are unsafe because they don't contain a device that prevents flames from jumping up the spout and exploding.
Wal-Mart's lawyers have argued in court filings that the retailer couldn't have known that the product "presented any reasonable foreseeable risk...in the normal and expected use."
Ms. Breneman says that when she first laid eyes on the racks of tapes, "I thought, 'How could anyone in the world allow this to exist?'" The videos, she says, deal with "everything anyone would want on Wal-Mart....They've got 30 years of people winging it."
Ms. Breneman says Flagler Productions located videos of product presentations to Wal-Mart managers in which executives gave parody testimonials about the same brand of gasoline can. In an apparent coincidence, one manager joked about setting fire to wet wood: "I torched it. Boom! Fired right up." In a separate skit, an employee is seen driving a riding lawn mower into a display of empty gasoline cans. A Wal-Mart executive vice president observing the collision jokes: "A great gas can. It didn't explode." The tapes were made before the lawsuit was filed.
The video company says it offered to sell the tapes to Walmart for several million dollars, but the retailer would pay only $500,000, saying that the "footage wouldn't be of interest elsewhere."
Candid Camera: Trove of Videos Vexes Wal-Mart [WSJ]
(Photo:Clean Wal-mart)
@b612markt: Actually, I was. Funny how certain people here think personal affronts are the same as comments. Be Nice.
]]>I'd say that's a whole lot more money than what the original article here describes as "several million dollars".
@B: If that was the original offer to Wal-Mart, then I would think they'd be looking for 145,000 lawyers to shell out a thousand bucks each to get the tapes. That reminds me of a lawyer joke....
]]>WaLLyWorld would not want these videos in the hands of opposition lawyers.
The cost of a lost lawsuits would cover the cost of the video's.
The production company wins this round...pay up WalMart...
]]>Sure, most of the public wouldn't know or care. But it calls for excellent comedy fodder and lawsuit material! Also, it'll expose some of their "secrets" once the public gets its hand on it.
]]>Also, this is the best news I've read all day! I hope all sorts of wonderful things happen that are bad for wal-mart.
]]>Ok who was the moron walmart exec that allowed a production company to keep the rights to all that they recorded?
]]>Sure it wont.
]]>@Orv: The danger with plastic gas cans is that they can develop a static charge, which is a potential source of ignition. When you see a sign on a gas pump that tells you to set the container on the ground while filling it; that's the reason.
]]>Consumerist should get in on this.
]]>Can everyone on Consumerist chip in a little money? Lets buy this and put it up here!
]]>Walmart, you cheap stupid bastard. Nice to see that notorious miserly streak rear up and bite you in the ass. Have fun in court!
]]>This company is in a dangerous spot.
If they provide these tapes to anyone for less than 'several million dollars', it can be construed as blackmail or extortion. If they leak portions of these tapes (which it seems they're doing), they can get sued for exposing Wal-Mart's intellectual property (different than simply the rights to the tapes they claim they own).
Pretty rocky ground if you ask me.
If I were this company, I'd negotiate for a good price with Wal-Mart, close the deal and walk away.
]]>It was basically a lot of managers in drag. I didn't get to hear any of the audio, but apparently there are lots of companies in legal disputes with Wal-Mart that are reviewing the tapes for information that could be useful in the courtroom.
]]>Step 2: ???
Step 3: Profit!
]]>They'll all just sit around and wait for them to show up on YouTube when no serious buyers step forward.
]]>@Blueskylaw: It's amazing to me that they didn't have some sort of contract in place specifying who had rights to the video whenever their relationship was terminated. Cripes, what a bunch of knuckle-draggers.
]]>Well, I guess if your company is going to go out of business, you might as well go out with a bang.
I think there are two lessons to be learned, here:
1) Don't get complacent and let one company account for 95% of your business, because when they leave, you're screwed.
2) Don't let someone tape your internal meetings without having an ironclad NDA.
Also, I don't know why anything on the tapes would come as a shock. Of course Wal-Mart managers hate children, plot against unions, and dress in drag.
]]>This may turn out to be one of the worst business decisions Walmart ever made, kind of like when IBM did not want to buy the DOS operating system for $10,000 so Bill Gates did.
]]>Even if Walmart bought back these videos now, I doubt the videos could be destroyed. They are potential evidence in many, many past, present and future lawsuits. This horse is out of the barn.
Some excerpts of these videos can be viewed on YouTube. When I saw one of Sam speaking to a group of managers--it made me realize how vastly different Walmart is today.
]]>If Walmart goes under then where am I going to get cheap plastic chinese products for a reasonable price?
]]>I have a feeling Walmart will pony up before these things get out on the market, although how great would it be if these things actually got out? Could this be the end of Walmart?
]]>