American Home Shield 2008 Annual Report Download - page 10

Table of Contents
Home Cleaning Services. Competition in the market for home cleaning services comes mainly from local, independent contractors, from homeowners
who clean their own homes, and from a few national companies such as The Maids, Molly Maids and The Cleaning Authority.
Furniture Repair Services. Competition in the market for furniture repair services comes mainly from local, independent contractors.
MAJOR CUSTOMERS
ServiceMaster has no single customer that accounts for more than 10% of its consolidated operating revenue. Additionally, no operating segment has a
single customer that accounts for more than 10% of its operating revenue. None of ServiceMaster's operating segments is dependent on a single customer or a
few customers, the loss of which would have a material adverse effect on the segment.
REGULATORY COMPLIANCE
Government Regulations
ServiceMaster's operating segments are subject to various federal, state and local laws and regulations, compliance with which increases ServiceMaster's
operating costs, limits or restricts the services provided by ServiceMaster's operating segments or the methods by which ServiceMaster's operating segments
offer, sell and fulfill those services or conduct their respective businesses, or subjects ServiceMaster and its operating segments to the possibility of regulatory
actions or proceedings. Noncompliance with these laws and regulations can subject ServiceMaster to fines or various forms of civil or criminal prosecution,
any of which could have an adverse effect on its reputation and financial condition, results of operations and cash flows.
These federal, state and local laws include laws relating to consumer protection, wage and hour regulations, deceptive trade practices, permit and license
requirements, real estate settlement, workers' safety, environmental regulations and employee benefits. The TruGreen LawnCare, TruGreen LandCare and
Terminix businesses must also meet the Department of Transportation and Federal Motor Carrier Safety Administration requirements with respect to their
fleets of vehicles. American Home Shield is regulated in certain states by the state insurance regulatory authority and by the Real Estate Commission in
Texas. TruGreen LawnCare, TruGreen LandCare and Terminix are regulated by various state and local laws, ordinances and regulations which are enforced
by state Departments of Agriculture, Pest Control Boards, Departments of Environmental Conservation and similar government entities. AmeriSpec is
regulated by various state and local home inspection laws and regulations.
Consumer Protection and Telemarketing Matters
ServiceMaster is subject to federal and state laws and regulations designed to protect consumers, including laws governing consumer privacy and fraud,
the collection and use of consumer data, telemarketing and other forms of solicitation.
The telemarketing rules adopted by the Federal Communications Commission pursuant to the Federal Telephone Consumer Protection Act and the
Federal Telemarketing Sales Rule issued by the Federal Trade Commission govern ServiceMaster's telephone sales practices. In addition, many states have
adopted laws and regulations targeted at direct telephone sales activities. The implementation of do-not-call lists requires TruGreen LawnCare, and, to a lesser
extent, ServiceMaster's other operating segments, to rely more extensively on other marketing methods and channels.
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