American Home Shield 2015 Annual Report Download - page 31

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Consumer Protection and Solicitation Matters
We are subject to international, federal, state, provincial and local 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 our telephone sales
practices. In addition, some states and local governing bodies have adopted laws and regulations targeted at direct telephone sales and
“do-not-knock,” “do-not-mail” and “do-not-leave” activities. The implementation of these marketing regulations requires us to rely
more extensively on other marketing methods and channels. In addition, if we were to fail to comply with any applicable law or
regulation, we could be subject to substantial fines or damages, be involved in lawsuits, enforcement actions and other claims by third
parties or governmental authorities, suffer losses to our reputation and our business or suffer the loss of licenses or penalties that may
affect how the business is operated, which, in turn, could have a material adverse effect on our financial position, results of operations
and cash flows.
Franchise Matters
Terminix, ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec are subject to various
international, federal, state, provincial and local laws and regulations governing franchise sales, marketing and licensing and franchise
trade practices generally, including applicable rules and regulations of the Federal Trade Commission. These laws and regulations
generally require disclosure of business information in connection with the sale and licensing of franchises. Certain state regulations
also affect the ability of the franchisor to revoke or refuse to renew a franchise. We seek to comply with regulatory requirements and
deal with franchisees and licensees in good faith. From time to time, we and one or more franchisees may become involved in a
dispute regarding the franchise relationship, including payment of royalties or fees, location of branches, advertising, purchase of
products by franchisees, non-competition covenants, compliance with our standards and franchise renewal criteria. There can be no
assurance that compliance problems will not be encountered from time to time or that significant disputes with one or more
franchisees will not arise.
From time to time, we receive communications from our franchisees regarding complaints, disputes or questions about our
practices and standards in relation to our franchised operations and certain economic terms of our franchise arrangements. If
franchisees or groups representing franchisees were to bring legal proceedings against us, we would vigorously defend against the
claims in any such proceeding, but our reputation, business, financial position, results of operations and cash flows could be materially
adversely impacted and the price of our common stock could decline.
Available Information
ServiceMaster maintains a website at http://www.servicemaster.com that includes a hyperlink to a website maintained by a
third party where ServiceMaster’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
all amendments to those reports are available without charge as soon as reasonably practicable following the time that they are filed
with or furnished to the SEC. The information found on the Company’s website is not a part of this or any other report filed with or
furnished to the SEC.
ITEM 1A. RISK FACTORS
You should carefully consider the factors described below, in addition to the other information set forth in this Annual Report
on Form 10-K. These risk factors are important to understanding the contents of this Annual Report on Form 10-K and of other
reports. Our reputation, business, financial position, results of operations and cash flows are subject to various risks. The risks and
uncertainties described below are not the only ones relevant to us. Additional risks and uncertainties not currently known to us or that
we currently believe are immaterial may also adversely impact our reputation, business, financial position, results of operations and
cash flows.
The materialization of any risks and uncertainties set forth below or identified in Forward-Looking Statements contained in
this report and our other filings with the SEC or those that are presently unforeseen could result in significant adverse effects on our
financial condition, results of operations and cash flows. See “Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations —Information Regarding Forward-Looking Statements” below.
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