Mystery shopping is a legitimate way to make money; however, if you received a large check and were told to wire money somewhere, don't do anything until you read about mystery shopping scams.

Secret Shopper Catches Embezzler

Posted on August 19th, 2011 in Secret Shopping and the Law,Types of Mystery Shops by Cathy Stucker

The Salisbury (North Carolina) Post reports that when employees of a Jersey Mike’s Subs were suspected of stealing cash, a secret shopper was sent in to do an integrity mystery shop to check it out. The secret shopper made a purchase with cash and observed that the employees did not ring up the sale and put the money into the register.

After further investigation, the sub shop has filed a report with local police. Arrests are expected in the case.

Although this mystery shop was done because the business was aware of a potential problem, sometimes the first indication of trouble comes when an integrity mystery shop identifies possible employee theft.

Integrity mystery shops are different from typical mystery shops in that instead of checking things such as cleanliness, courtesy and sales skills, they are done to verify that employees are behaving honestly.
…continue reading Secret Shopper Catches Embezzler

Mystery Shopping Industry Working to Save Jobs

Posted on April 30th, 2009 in Secret Shopping and the Law by Cathy Stucker

Nearly 20 mystery shopping industry representatives went to Washington to meet with lawmakers Wednesday on behalf of the estimated 1.5 million independent contractors who are mystery shoppers.

Congress proposed legislation last year on worker classification – whether individual workers are treated as independent contractors or as employees by the IRS and the U.S. Department of Labor.

The goal of the legislation is to address the “tax gap” caused by the improper classification of workers for tax reporting purposes. The Independent Contractor Proper Classification Act stalled in 2008 due to presidential opposition but is expected to be re-introduced in 2009.

MSPA is closely monitoring this proposal and cites multiple concerns:

  • It hinders a person’s ability to earn extra money at a time when so many people need it
  • It will impose new compliance costs on small businesses and others who rely upon independent contractors
  • It will increase the cost for companies to utilize mystery shopping providers to objectively evaluate a customer’s experience and train/reward their employees …continue reading Mystery Shopping Industry Working to Save Jobs

What is an Independent Contractor?

Posted on December 5th, 2008 in Independent Contractor Issues,Mystery Shopper Taxes,Secret Shopping and the Law by Cathy Stucker

businesswoman.jpgThe following is provided as general information about Independent Contractors. It is not legal advice. If you require legal advice, you are encouraged to consult an attorney knowledgeable in this aspect of the law.

As secret shoppers, we typically work as Independent Contractors (ICs), not employees.

There is not a single factor or test that determines whether a worker is an employee or an IC. Saying that someone is an Independent Contractor does not necessarily make it so. There are several things that regulatory agencies, such as the Internal Revenue Service and state tax departments, consider when determining is someone is an employee or an IC. The rules are often vague, and interpretation is up to the agency making the determination.

The IC relationship is spelled out in the Independent Contractor Agreements (ICA) between mystery shoppers and mystery shopping companies. These agreements define the rights and responsibilities of both parties. ICAs often include language relating to the factors regulatory agencies consider when determining if someone is an employee or an IC.

So what does it mean to be an Independent Contractor?

…continue reading What is an Independent Contractor?

Secret Shoppers in Nevada

Posted on December 6th, 2007 in Secret Shopping and the Law by Cathy Stucker

Nevada has the most stringent requirements for secret shoppers. Most states have no special requirements or licensing and anyone can be a mystery shopper, but to mystery shop in Nevada you must be an employee of a licensed private investigator. As a result, you should not plan on picking up a couple of shops on your next trip to Las Vegas. If you live in Nevada, here is what you need to know about becoming a secret shopper. …continue reading Secret Shoppers in Nevada

Can I Deduct a Speeding Ticket?

Posted on September 18th, 2007 in Mystery Shopper Taxes,Profitable Mystery Shopping,Secret Shopping and the Law by Cathy Stucker

In a recent post about saving money on gas, I wrote that you should avoid speeding to get better gas mileage, as well as to avoid the expense of speeding tickets. That prompted one reader to email me and ask (rather sheepishly) if she could deduct the cost of a speeding ticket on her income taxes. She was driving between shops at the time she got the speeding ticket, so would it be considered a business expense?

…continue reading Can I Deduct a Speeding Ticket?

Using a Voice Recorder When You May Not Legally Record

Posted on September 11th, 2007 in Mystery Shopper Tools,Secret Shopping and the Law by Cathy Stucker

In a recent post, I wrote about the legality of using a digital voice recorder on mystery shops. In many U.S. states and Canadian provinces, it is legal to make recordings, especially in public where there is no expectation of privacy. But what if you live in a state where you may not legally record conversations without permission? Should you toss your digital voice recorder in the trash, or sell it on eBay? Not so fast—there are ways you may legally and ethically use your recorder to help you on mystery shops. …continue reading Using a Voice Recorder When You May Not Legally Record

Mystery Shopping, Recording and the Law

Posted on August 28th, 2007 in Mystery Shopper Tools,Secret Shopping and the Law by Cathy Stucker

I recently wrote about buying a digital voice recorder. That prompted some readers to ask about the legality of recording mystery shops. This should not be considered legal advice, as I am not a lawyer. However, there are some basics about recording conversations you should know if you are thinking about using a voice recorder on your mystery shops. I will also share resources where you can find out what the laws are in your jurisdiction. …continue reading Mystery Shopping, Recording and the Law