And Store Lists, Ordering Info, Store Qualifications

Diamond Comic Distributors parent Geppi Family Enterprises Chief Relationship Officer Chris Powell has responded to ICv2 questions about a Diamond data leak, the contents of the leak, and Diamond policies on store qualifications.

The data leak, first reported by Bleeding Cool, occurred when a file containing Diamond account and ordering info was inadvertently sent to a number of Diamond customers late last month.

A column by Brian Hibbs for Comics Beat reported information contained in the data file, including what he interpreted as the number of stores Diamond Comic Distributors services from its U.S. locations, and information on Diamond customers’ April-October 2019 purchases of Marvel Comics. According to the report, there were 3,112 stores worldwide in the data, buying through 2,440 accounts. Of those, U.S. stores accounted for 2,506, buying through 2,061 accounts.

Hibbs also argues that in his home market of San Francisco, three of the 11 Diamond accounts listed do not appear to meet Marvel’s terms of sale requiring a permanent retail venue, and that the customers not be hobbyists, but are nonetheless buying at wholesale prices through Diamond.

We reached out to Powell for comment and this is what he said.

ICv2: Can you confirm that a Diamond CSR accidentally sent Diamond account info, including purchase amounts of Marvel products, to a number of Diamond customers?

A spreadsheet with partial Marvel purchase data was accidentally sent out by a Retailer Services Representative. It was part of a specific call project and does not contain all sales or customer data for Diamond or Marvel.

How did this happen, and what steps is Diamond taking to make sure this doesn’t recur?

A Retailer Services Representative inadvertently sent out a file to retailers in error. We are reviewing our procedures for the handling of sensitive documents and implementing additional safeguards to minimize and hopefully eliminate future transfers of sensitive data.

Can you confirm that the information that was accidentally sent to customers showed that Diamond serviced 3,112 stores, buying through 2,440 accounts, on Marvel Comics between April and October 2019? Can you also confirm that the information that was accidentally sent to customers showed that of those, 2,506 stores were in the U.S., buying through 2,061 accounts?

The data was part of an internal call project and is not an exact accounting of the customer base or total sales. We will not be commenting on specific numbers.

It’s been alleged that in one market, San Francisco, three of the 11 accounts listed do not meet the requirements to be a customer in the terms of sale for Diamond and/or Marvel products purchased through Diamond. Does Diamond have a comment on that allegation?

We do not comment on specific account information, but do have procedures in place to address these types of issues when they are brought to our attention.

What steps does Diamond take to ensure that new accounts meet the requirements in the terms of sale

It’s important to note that the cost to service small accounts is significantly higher than larger ones, so we must be proactive in policing accounts that we don’t believe meet our Terms of Sale. However, an account that is able to provide tax and other documentation that substantiates retail sales can meet these criteria.

What steps does Diamond take to ensure that existing accounts continue to meet the requirements in the terms of sale?

On a quarterly basis, accounts are reviewed to see if they are meeting our minimums, and we follow up monthly on reports from retailers for accounts they believe may no longer be operating as retailers. A request for documentation is made, and an account that does not supply said documents is closed.

The minimums are reviewed annually, but have not changed in some time. In an effort to make sure that retail customers have as many options to buy comics as possible, we err on the side of caution when it comes to whether an account not meeting our minimums (while still acting as a retailer) is given more time to increase their purchases and reach sustainable sales volume.

Note: Updated with Diamond response as of 12:20 CT, December 19.