The Federal Trade Commission (FTC) issued a ban on Tuesday barring employers from imposing non-compete clauses on their employees. The ban passed on a 3-2 vote, with both Republicans on the FTC voting against the ban.

Non-compete clauses are a contractual term between an employer and a worker that blocks the worker from working for a competing employer or starting a competing business, typically within a certain geographic area and period of time after the worker’s employment ends.

• The FTC’s ruling leaves existing non-competes with senior executives intact while banning future non-competes for top corporate officials.
• The rule is intended to go into effect 120 days after it is published in the Federal Register.
  
  

In February, PPAI Media listed non-compete clauses as one of the key employment areas to watch in 2024 after the FTC proposed the legislation that this ban initially stemmed from in January. Last year, Joshua White – then the head of strategy and general counsel at BAMKO and a member of the PPAI Board of Directors – wrote a column for PPAI Media arguing against non-compete contracts as a practice in promo and predicting this week’s outcome.

“The point here is not to challenge your opinion on non-competes,” White wrote. “I expect the FTC will take that issue out of your hands soon enough. My point is to challenge the way you think about people, culture and the role you play in shaping both.

‘Undeniably Impactful’

Maurice Norris, PPAI’s public affairs manager, states plainly that the ruling has obvious implications for companies in the industry that have non-competes baked into their standard hiring process.

“This new rule from the FTC is undeniably impactful,” Norris says. “It doesn’t just mandate communications to current employees, but additionally requires companies to eliminate most existing non-competes, with some exceptions. The 120-day effective date is also approaching soon.”

FTC Commissioner Rebecca Kelly Slaughter issued a statement on the topic of non-competes, claiming that they put American workers in a position in which they cannot move freely within an industry they may excel at.

“It is so profoundly unfree, and unfair, for people to be stuck in jobs they want to leave [as a result of non-compete contracts],” Slaughter says.

• The ruling that passed Tuesday reflects the draft that was proposed back in January with the exception that existing non-competes specifically with senior executives can remain in place. No future non-competes are allowed, for senior executives or otherwise.
  
  

The two dissenting voters clarified that their issues were with the agency’s authority to issue the ban, rather than the merits of the ban itself.

Not The Final Word

Non-compete contracts are unlikely to go away without a fight. It is expected that multiple lawsuits will be filed by business groups questioning the FTC’s ability to issue such a ban.

• The U.S. Chamber of Commerce has already stated that it intends to sue in order to block the ruling.
  
  

“This decision sets a dangerous precedent for government micromanagement of business and can harm employers, workers and our economy,” says Suzanne Clark, Chamber of Commerce president and CEO. “The Chamber will sue the FTC to block this unnecessary and unlawful rule and put other agencies on notice that such overreach will not go unchecked.”

Norris anticipates that a Congressional Review Act resolution will follow the FTC ruling in the near future.

• The Biden administration has argued that non-compete contracts ultimately harm individual workers, lower wages and create negative ramifications on the U.S. economy.

Written by: Jonny Auping

Published with Permission from PPAI

VisionUSA®, a leading innovator in the promotional products industry, proudly unveils its latest addition to the brand collection: Splitflask.   This groundbreaking tumbler introduces a revolutionary design, featuring a dual chamber that allows users to carry both hot and cold liquids simultaneously.

In a world where versatility and convenience reign supreme, Splitflask emerges as a game-changer, offering a solution to the age-old dilemma of choosing between hot coffee or refreshing iced tea. With its innovative dual chamber construction, this tumbler empowers users to enjoy their favorite beverages without compromise, catering to their diverse preferences and lifestyle needs.

"At VisionUSA®, we are committed to pushing the boundaries of innovation and delivering products that enhance everyday experiences," says Felix Soliz, President of VisionUSA®,  "With Splitflask, we are excited to introduce a new standard of functionality and convenience to the promotional products space, offering our clients and their customers a unique solution that aligns with modern demands."

The  tumbler boasts a sleek and ergonomic design, crafted from high-quality materials to ensure durability and reliability.  With its innovative double-walled, stainless steel dual chamber design,  offers a seamless way to carry two beverages simultaneously, empowering users to indulge in their favorite drinks without compromise.  (See the Splitflask in use, click Here)!           

Whether it's enjoying a piping hot espresso alongside a chilled fruit-infused water or sipping on a steaming cup of cocoa while keeping an iced latte cold, Splitflask caters to the dynamic preferences of today's consumers. Perfect for on-the-go professionals, outdoor enthusiasts, or anyone seeking a versatile beverage companion, this innovative tumbler is set to redefine the way people enjoy their drinks.

 

"We believe that Splitflask will resonate with a wide range of audiences, from busy commuters to outdoor adventurers, offering them unparalleled convenience and enjoyment," adds Soliz.  "As we introduce this exciting addition to the VisionUSA® brand collection, we look forward to empowering our clients to make a lasting impression with their promotional campaigns."

Whether used as corporate gifts, event giveaways, or promotional merchandise, Splitflask promises to leave a lasting impression, reflecting the quality and innovation synonymous with the VisionUSA®,  brand.

For more information about Splitflask and other products offered by VisionUSA®, please visit www.vision1usa.com.

Chris Babiash, MAS, president and CEO of Minnesota-based distributor Booshie, will be attending PPAI Legislative Education and Action Day (L.E.A.D.) for the seventh time this year.

“During my time with L.E.A.D., I’ve seen and learned so much about how Washington, D.C. works and how important it is for our industry to have face time with the leaders running the country,” Babiash says.

On May 13-14, Babiash will join fellow PPAI members and staff to once again meet with members of Congress and their staff on Capitol Hill to discuss pending legislation and issues relevant to the promotional products industry.

• As L.E.A.D.’s name suggests, the first objective is always to inform legislators and their staffs about the size and importance of the promo industry, which represents a $26 billion sales market in the United States and employs roughly half a million Americans.
  
  
• Last year, during the first in-person L.E.A.D. since 2019, more than 60 promo pros held over 80 meetings designed to make connections and educate lawmakers on the branded merchandise industry and four key points important to it today.

Being Informed And Involved

Babiash, who also serves as president of the Upper Midwest Association of Promotional Professionals (UMAPP), believes many promo pros are like he used to be – unaware and uninterested in the issues impacting the industry unless (or until) they directly impact them.

“For too many years, I had my head down and only focused on myself and my career, but I’ve evolved and believe we should be doing everything we can to expose, teach and educate people about our industry and its issues,” Babiash says.

Nowadays, he’s most concerned about sustainability, compliance and importing costs, particularly carriers’ ability to “nickel and dime” customers with fees and “emergency charges.”

Although Babiash has become a familiar face on Capitol Hill through L.E.A.D., he doesn’t consider himself a political junkie. “I neither love politics, nor do I like to engage with and discuss it,” he says.

“But I like L.E.A.D. because it allows me to push myself in my comfort zone of seeing and understanding the movement and happenings while staying in the bipartisan world, which is how it should be. I like to see and understand both sides and make decisions based on what is best for everyone.”

Promotional Products Work!

As in years past, one of the main points that 2024 L.E.A.D. participants aim to get across to lawmakers is that promotional products are the most cost-effective, memorable and longest-lasting form of advertising.

• According to PPAI’s most recent Consumer Study, nearly three quarters agree that promo products are a good way to learn about sales and events, and 72% agree that they’re helpful for learning about new businesses in the area.

“If used correctly, promo is powerful,” says Patricia Dugan, MAS, vice president of sales and marketing at Massachusetts-based supplier BUDGETCARD and a 2023 recipient of PPAI’s Women of Achievement Award.

Dugan, who says she attended a previous incarnation of L.E.A.D. several decades ago, will be attending this year to represent the New England region. “L.E.A.D. is very important, especially regarding Prop 65,” she says. “We need to know about and fight for certain issues. Look how long we worked on the independent contractor issue!”

Throughout her nearly half century in the promo industry, Dugan has served in dozens of board positions within PPAI, as well as Promotional Products Education Foundation chair from 2015-2017, leading the nonprofit through a defining period of change that ultimately led to increasing scholarships.

• Under her guidance, PPEF increased scholarships from $25,000 to $150,000, the highest dollar amount ever awarded in a single year at the time. 

So, it should be no surprise that education on the importance of promo products is important to her. “Government shouldn’t limit the sale or use of promo products because they do solve problems, especially with getting people to vote,” Dugan says.

Written by John Corrigan

Published with Permission from PPAI

Proforma (PPAI 196835, Platinum) – the No. 5 distributor in the inaugural PPAI 100 – has announced that Meg Erber’s responsibilities have expanded to leading sales, coaching and recruitment efforts at Proforma’s Worldwide Support Center.

A 25-year veteran of the promotional products industry, Erber joined the Ohio-headquartered company as director of sales in February.

Her fingerprints are all over the promotional products world. Coming to the industry after a career in the U.S. Navy, Erber has made her mark by creating or contributing to promo channels beyond just the scope of her official job title.

• She is a perennial member of PPAI’s #Online18.
• Erber was also the former co-host of PromoCorner’s Industry Insider podcast, which has since evolved into Branding Banter.
• She is a sitting member on the PromoCares Board of Directors.

Proforma Promotions

Erber will be keeping her title even though her role has expanded due to Greg Armstrong, formerly chief sales officer at Proforma, being promoted to president of Proforma GPS (PPAI 176728, Standard-Plus), a Nevada-based distributorship owned by Steve and Donna Raucher.

“It has been incredible to serve alongside the dedicated team at Proforma’s Support Center,” Armstrong says. “As I embark on this new role, I’m grateful for the support and camaraderie that defined my journey there and that will undoubtedly continue as I pivot to a new position within the Proforma family.”

Proforma CEO Vera Muzzillo adds that “Greg's leadership has been instrumental in shaping Proforma's success, and I’m confident that Proforma will continue to flourish under Meg's leadership. We congratulate Greg on his new role and look forward to a continued partnership as we forge ahead in our mission to empower businesses worldwide.”

Written by John Corrigan

Published with Permission from PPAI

ePromos Promotional Products (PPAI 212648, Platinum) – ranked the No. 19 distributor in the inaugural PPAI 100 – has announced that Heather Sanderson has joined the St. Cloud, Minnesota-based firm as its new vice president of sales.

With more than 20 years of experience in the promotional products industry, Sanderson cited ePromos being a certified Women’s Business Enterprise National Council (WBENC) company as one of the reasons she joined.

“The benefits of being a female-owned business are immense,” Sanderson says. “Women entrepreneurs have access to federal contracts, networking, educational opportunities, new clients and business partners, and significant roles in transforming industries, contributing to the economy and empowering communities across America.”

Sanderson’s Background

Sanderson was one of the three founding members of Overture Promotions –ranked the No. 15 distributor in the inaugural PPAI 100 – where she worked in sales and operations before becoming CEO.

• During her tenure, she helped grow the company to 150 employees and $60 million in sales.
• At Overture, Sanderson spearheaded a strong mentorship program supporting team growth and development.
• Like ePromos, Overture is a WBENC-certified business.

“We couldn’t be more excited for Heather to join the ePromos team,” says Adam Rosenbaum, president of ePromos. “Heather is a perfect fit for our culture and her success scaling the sales team and company during her tenure at Overture speaks to our commitment of providing best-in-industry leadership for our sales team and the expansion of our business development efforts.”

“ePromos continues to be uniquely positioned in our industry to service enterprise, mid-market and e-commerce clients,” Rosenbaum adds, “and Heather’s depth of experience will be instrumental in achieving our omnichannel growth plans.”

Sign-Zone, the parent company of Brooklyn Center, Minnesota-based supplier Showdown Displays (PPAI 254687, Platinum) – the No. 14 supplier in the inaugural PPAI 100 – announced today that it has acquired AAA Innovations (PPAI 110972, Standard-Plus). The Orangeburg, New York-based supplier offers products such as umbrellas, coolers and outdoor recreational products.

A source close to the deal says AAA's annual sales are roughly $40 million. The new business is expected to push Showdown's revenues north of $150 million per year. 
Showdown Displays has a track record of investing in its operations, procedures and the larger promotional products community.

Earlier this month, Showdown was recognized for its customer service with a 2024 People’s Choice Stevie Award.
In May 2023, the supplier received a 2023 silver medal from EcoVadis for its achievements in sustainability and overall efforts to reduce its carbon footprint.

Kevin Walsh, president of Showdown Displays, is currently Immediate Past-Chair of the PPAI Board of Directors, after serving as Board Chair in 2023.

The two organizations expect to be able to leverage the operational resources and geographical locations of each in order to create new opportunities.

The acquisition combines what Showdown considers "similar but unique" product lines that will continue to be sold only through authorized reseller partners.

"Joining the Sign-Zone [the parent company of Showdown Displays] family provides limitless possibilities for our business and team of professionals," says Nanus. "The entire AAA team is excited about the opportunities this acquisition creates, including accelerated growth from additional investment."

The two organizations will have a combined production and fulfillment space across North America of approximately 400,000 square feet with additional operations in Europe. 

"AAA Innovations’ unique products and branding solutions have helped them build strong reseller partnerships in the promotional products industry," says John Bruellman, CEO of Sign-Zone. "The company has a deep commitment to delivering a memorable customer experience. We’re extremely excited to bringing additional production capacity, expanded geographic presence and tremendous expertise and talent into our organization."

Similar But Unique Product Lines
The two companies will continue to operate on a standalone basis, with AAA Innovations retaining its brand name and customers. 

Jeff Nanus, owner of AAA Innovations, will remain with the organization as president, a role he served prior to the acquisition.

Showdown Displays will remain in Brooklyn Center, Minnesota. AAA Innovations is currently moving to a new facility located in Orangeburg, New York. 

Written by: Jonny Auping

Published with Permission from PPAI

Almost exactly six months after joining Hit Promotional Products (PPAI 113910, Platinum), Jon Norris has been promoted to the role of chief strategy officer. The C-suite position shift will likely provide Norris, an industry veteran with an expertise in technology standards, with a more direct influence over the supplier’s direction going forward.

• Norris previously held the title of vice president of business process improvement.
• Hit Promotional Products ranked as the No. 4 supplier in the inaugural PPAI 100.

Norris’ Promo Pedigree

Norris may have just a half year under his belt at Hit Promotional Products, but he is a 20-year veteran of the promo industry.

• Prior to joining Hit, Norris spent more than 19 years at Starline, where he was chief operating officer upon his departure.
• He’s also a co-founder and current leadership team member of PromoStandards, a group of industry IT professionals who focus on the development of technology standards to enable system-to-system communication in an effort to reduce the cost of business between suppliers and distributors.
  
  

CJ Schmidt, president of Hit Promotional Products, said that bringing Norris to the supplier was “a testament to our commitment to lead, innovate and excel in the promotional products industry.”

• Norris was named a PPAI Rising Star in 2014.
• He was named to the #Online 18 in 2020.
  
  

Norris’s track record of volunteerism in the promo industry includes time on PPAI’s Technology Committee, where he was lauded for “his passion for what he does in every respect.” As an Association volunteer, he was recognized for the ideas he brought to the table, his collaborative spirit, results-oriented outlook and being a “great leader and role model for others.”

Norris has called his colleagues at Hit Promotional Products some of the hardest working members of the industry.

“[I] couldn't be happier to continue to work hard with my Hit crew and amazing ownership, who continues to invest into what this impressive organization is capable of,” Norris says. “New role, new responsibilities, same great company, amazing customers and ever-changing industry.”

Changing Scenery At Hit Promotional Products

The news of Norris’ promotion to chief strategy officer comes only two months after the announcement of Eric Shonebarger stepping down from his role as president, who had been with the company for two decades. Schmidt, the company’s CEO, moved into the role of president.

• The company’s 2022 revenue exceeded $600 million.
• From 2019-2022, Hit Promotional Products grew in revenue by 23%.
• The 2023 PPAI 100 rankings awarded the supplier High Marks in Revenue, Growth, Online Presence, Innovation and Professional Development.
  
  

Norris joining Hit last year was part of a trend of adding senior level talent with industry experience in recent years.

• In late 2022, Hit Promotional Products added Kim Brockschmidt as VP of business development.
• Last year, Tiffany Tarr joined the supplier as VP of eCommerce.

Written by Jonny Auping

Published with Permission from PPAI

Fey Promo is excited to welcome TJ Garrett, MAS to our Sales Team!

TJ joins the team as a Senior Account Executive.  With over 30 years of experience in the promotional product industry, TJ has had the opportunity to work both on the distributor and the supplier side.  TJ has exceled in the industry and has been a recipient of the Bess Cohn Humanitarian Award.

“This industry has always lifted me up.  Every day I discover something exciting and learn something new”, states TJ.  She hopes to bring her diverse experience, knowledge and love of promotional products to her clients.

TJ is based in her favorite state of Texas where she loves spending family time with her two sons and grandson or watching football.  “Her core values align with Fey Promo”, states Shelley Sake, Director of Strategic Growth.  “TJ is a welcome addition to our team and is a day brightener to her customers with the excitement she brings forth on any project”.

There's a new reminder for promotional products companies to take the threat of cybercrime seriously; attacks can happen to anyone.

HALO (PPAI 106462, Platinum) – ranked the No. 2 distributor in the inaugural PPAI 100 – suffered a data breach in November 2023 that affected 7,305 people, according to a report filed this week with the Office of the Maine Attorney General.

• The Sterling, Illinois-based company reported that it was hacked on November 22, 2023, resulting in unauthorized access to some of its computer systems.  

“We immediately took steps to contain the incident and engaged federal law enforcement and leading cybersecurity experts to investigate the matter,” HALO told PPAI Media. "It wasn't until February 2024 that our investigation discovered that the data we reported to the state of Maine was impacted."

What Happened?

In a notice to impacted clients sent on March 28, HALO CEO Marc Simon said that some computer systems were accessed by a “sophisticated threat actor” who evaded detection by HALO’s information security defenses.

The threat actor stole private information, such as names, birthdays and Social Security numbers of some of its current and former employees, as well as independent contractors, HALO said.  

• That information was provided to HALO’s human resources department for tax or benefits purposes, according to the notice.

 

“Upon discovering the situation, we promptly took these systems offline, notified law enforcement and engaged cybersecurity experts to investigate," Simon said, adding that HALO has recovered the files.

“To our knowledge, we’re not aware of any actual or attempted misuse of personal information as a result of this incident,” Simon said.

Next Steps

“Since early December, HALO has been operating normally and is confident the incident has been contained,” the firm told PPAI Media.

Ongoing efforts since the data breach include HALO working with external cybersecurity experts to investigate what happened, strengthening its computer network and monitoring the “dark web” for information relating to the company, Simon said.

HALO is offering affected clients the option to enroll in an identity protection solution from Cyberscout free of charge for 12 months.

• In the notice, HALO also included an Identity Protection Reference Guide that includes information on general steps you can take to monitor and protect your personal information.

“Please know that we’ve taken a number of steps to address this situation, and that we’re committed to doing the right thing for everyone involved,” Simon said.

• HALO earned PPAI 100 High Marks in the Innovation category in 2023.

Written by: John Corrigan

Published with Permission from PPAI

A T-shirt that tells a story. That’s the goal of California-based supplier Lane Seven Apparel (PPAI 630869, Standard-Base). Lane Seven kicked off a series of interactive experiences designed to engage customers and end users at South by Southwest, the annual mid-March festival focused on creative pursuits including film, interactive media and music.

Meghan Brazzelle, senior sales manager for Lane Seven, lives in Austin, Texas, where SXSW takes place, and she knew the festival would be a great way to connect with and support emerging artists. “It’s more than just a music festival, or TV and film,” she adds, “so you really reach all creative types.”

Milissa Gibson, L7 sales director, agrees. “I don’t think that there is a more organic and central point anywhere in the current market that you can bring a brand to and then have it blow up immediately after that,” she says. “You’re reaching and engaging with everyone from Porsche all the way down to a garage band.”

The Road To SXSW

Shortly after she joined the team at Lane Seven last May, Brazzelle reached out to a friend who also happens to be the merchandise manager for SXSW to secure the company’s spot as the official T-shirt sponsor for SXSW 2024.

A big part of the deal and its appeal was the SXSW merch truck, which made its debut in 2023. Social media posts alert followers to its location as it travels to different SXSW events across the city, adding the excitement of a scavenger hunt.

Lane Seven partnered with Supacolor (PPAI 820922, Standard-Base) to bring on-the-spot, live decoration to the merch truck to further engage customers. Once a buyer purchased an official SXSW shirt, they could add their choice of L7’s art via heat transfer for free, and they were invited to post photos with the hashtag #L7SXSW.

Lane Seven also solicited artwork via social media to adorn a free-with-purchase tee that was given out at SXSW. “The idea with that was to piggyback on the innovation that takes place at South by Southwest and hopefully inspire our customers [with] the opportunity to have their artwork to prominently displayed on South by Southwest merch,” says Alexis Shubin, marketing manager for Lane Seven.

“We’re showing off what we do, but what we really love is showing off what our customers are doing,” says Gibson. “There’s so much creativity and ingenuity in this industry. … I’m awestruck by what people come up with.”

Lessons For The Road Ahead

Brazzelle says the SXSW activation proved to be a great way to showcase Lane Seven merchandise, as well as make a lasting impression – both on the shirt and in the customer’s mind.

“It’s more than just printing or decorating a shirt or a hoodie,” she says. “It’s also being able to create those unique and memorable moments that someone can take home to build a deeper connection with our brand.”

As official sponsors, the L7 team was able to set up not only next to the merch truck but also in the SXSW official merch booth, putting them at the heart of the action where they were able to engage in valuable conversations. “Engaging with up-and-coming artists about the significance of merch in building their brand was not only enlightening but also incredibly rewarding,” says Brazzelle.

And SXSW was only the beginning, adds Shubin. “We plan to have the tour keep going to trade shows, so hopefully it takes on a life of its own,” she says. By the end of March, the team had already completed two more activations: one at a decorators’ trade show and another during a large distributor’s internal conference.

“We’ve learned a lot, and we are so excited to explore where this tour is going to take us,” says Gibson. “Being at SXSW and seeing firsthand the engagement people had with the art and garment was a great reminder of the power of merch and how much it can tell a brand story.”

Written by: Rachel Zoch

Published with Permission from PPAI