Is it a conflict of interest for CGC to grade comics it also restores/presses?

[SpideySense-migration]

Would it be a conflict of interest for CGC to grade comics it also restores/presses? For example, if a former CGC grader started up a sister company under CGCs parent company's umbrella that restores/presses comics prior to CGC grading them, is that a conflict of interest? For the sake of this poll lets assume that said comics are not shipped directly from the sister company to CGC, but to the customer first who then ships to CGC to be graded.

[FFB]

Just to clarify -- I voted no, because I don't see a conflict of interest in the way that Steve described the arrangement. But I don't want my no vote to be taken as a vote in favor of the company being added to the CCS group of companies.

 

My problem with the arrangement as described isn't a "conflict of interest" issue. My problem with it is, as I said in the thread Steve started, the fact that this arrangement will signify an explicit policy shift on the part of CGC's parent company (and by extension, on the part of CGC) to encourage NDP for financial gain, as opposed to merely tolerating it before because "it couldn't be detected."

 

CGC has long said that one of the reasons they don't label NDP books as restored is because they can't consistently detect when a book has been pressed. (One other reason I've seen Steve say is that NDP is such a minor form of alteration that the industry as a whole doesn't consider it to be restoration.)

 

There is clearly controversy over the acceptability of NDP books being sold as unrestored. While some say it's ok to do so, I've never seen a single one of these people disclose in an auction description that a book had undergone NDP. NDP involves taking a lower grade book and altering it to improve its appearance and grade.

 

For CCS to form a company under the same umbrella as CGC would be to create an affiliation between CGC and the new company that could be seen as a kind of ratification by CGC of the practice of using NDP to improve the grade of a book. If CGC does so, it's prior statement that "CGC does not label NDP books as restored because we can't consistently detect it" would seemingly be giving way to a new statement of "Since there is money to be made as a result of our policy of not labeling NDP books as restored, we want our slice of the pie that we have helped create by declaring that NDP is not restoration."

 

CGC will be seen as (directly or indirectly) encouraging people to press their books to improve the grades of the book, and by slabbing those books blue (you know the owner is going to submit them to CGC, so it doesn't matter whether the books come straight from Chris Friesen or not) CGC is placing its stamp of approval on the NDP process, whereas its prior stance was, at least in part, "We can't detect it so we don't label it."

 

***Edit***

 

One thing I wanted to add to the end after a bit more thought. As I said before, allowing Chris to run the company as a separate entity isn't a conflict of interest.

 

But adopting a standard whereby NDP is not considered restoration and then taking advantage of that standard for financial gain could be considered a conflict of interest. So my answer to the specific question posed re: whether the described setup would present a classic conflict of interest is still no, but the overarching problem of CGC and its parent company taking advantage of a standard that CGC already adopted re NDP would be a conflict of interest.

 

These are both reasons why I think that Chris should keep the company outside of the CCS umbrella if he does do it.

[supapimp]

ditto

[SpideySense-migration]

For CCS to form a company under the same umbrella as CGC would be to create an affiliation between CGC and the new company that could be seen as a kind of ratification by CGC of the practice of using NDP to improve the grade of a book. If CGC does so, it's prior statement that "CGC does not label NDP books as restored because we can't consistently detect it" would seemingly be giving way to a new statement of "Since there is money to be made as a result of our policy of not labeling NDP books as restored, we want our slice of the pie that we have helped create by declaring that NDP is not restoration."

 

I totally agree.

 

My problem is that I think having a restoration company and a grading company under the same umbrella creates the perception that those comics restored by CGC's new sister company will get more "favorable" treatment than those restored by a private restoration company. That being said, I think CGC is an honest broker, but that doesn't matter when it comes to perception. I would hate for something like this to damage their reputation and in turn damage everyone who has CGC slabs in their collections. Maybe I am making too big of a deal about it.

[Aman619]

good post. Sums it up well. I just dont understand why CGC wants to open up this can of worms again...

[lou_fine]

There is clearly controversy over the acceptability of NDP books being sold as unrestored. While some say it's ok to do so, I've never seen a single one of these people disclose in an auction description that a book had undergone NDP. NDP involves taking a lower grade book and altering it to improve its appearance and grade.

 

FFB;

 

My point exactly as stated many times before. Pressing clearly fits under the definition of restoration in that its sole purpose is to artificially improve the appearance and grade in order to increase it's value.

 

It is also obvious to me that EVERYBODY also agrees that it is restoration since they are refusing to disclose it in their auction description because they know that this disclosure is basically acknowledging that the book has been altered or restored and would result in an immediate devaluation in the market value of the book.

 

Is there not one person out there who truly believes that pressing is not restoration and is willing to back this up by admitting that their books have undergone NDG which is fine with him since it is not restoration. Thought not.

[drbanner]

There is clearly controversy over the acceptability of NDP books being sold as unrestored. While some say it's ok to do so, I've never seen a single one of these people disclose in an auction description that a book had undergone NDP. NDP involves taking a lower grade book and altering it to improve its appearance and grade.

 

FFB;

 

My point exactly as stated many times before. Pressing clearly fits under the definition of restoration in that its sole purpose is to artificially improve the appearance and grade in order to increase it's value.

 

It is also obvious to me that EVERYBODY also agrees that it is restoration since they are refusing to disclose it in their auction description because they know that this disclosure is basically acknowledging that the book has been altered or restored and would result in an immediate devaluation in the market value of the book.

 

Is there not one person out there who truly believes that pressing is not restoration and is willing to back this up by admitting that their books have undergone NDG which is fine with him since it is not restoration. Thought not.

 

Actually, there are quite a few board members who do not believe pressing is restoration...mushroom(?) comes to mind, but there are others.

[Red Hook]

good post. Sums it up well. I just dont understand why CGC wants to open up this can of worms again...

 

Any chance it's related to the concern that Chris walks away from CGC with tons of do-tell stories, trade secrets, insider info. Bankrolling him and/or keeping him in the CGC fold could make for a "simpler" relationship and make sure there is no dissemination of that info.

[awe4one]

Any chance it's related to the concern that Chris walks away from CGC with tons of do-tell stories, trade secrets, insider info. Bankrolling him and/or keeping him in the CGC fold could make for a "simpler" relationship and make sure there is no dissemination of that info.

 

Now for those that don't know the difference, THIS is a conspiracy post...

 

Jim

[burntboy]

my feeling on the poll lines up pretty much with what FFB has to say.........

 

IF, after books are worked on and they are then returned to the owners for submission (OR NOT depending on why the book is being worked on), i have much less of a problem and therefore also voted NO.

 

if the books were to be submitted directly into CGC after work was performed for grading, i'd see both a big potential for a conflict of interest as well as being VERY uncomfortable that CGC was now going to grade books that were KNOWINGLY worked on and still give out the Blue Label.............

[comicwiz]

good post. Sums it up well. I just dont understand why CGC wants to open up this can of worms again...

 

Any chance it's related to the concern that Chris walks away from CGC with tons of do-tell stories, trade secrets, insider info. Bankrolling him and/or keeping him in the CGC fold could make for a "simpler" relationship and make sure there is no dissemination of that info.

 

... or that due to the considerations you have raised, he continues to be a bankable asset to the parent.

[RS]

Right on the money

[Dr_Neff]

bump