Kirby Company
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The Kirby Company (stylized as KIRBY) is a manufacturer of
vacuum cleaner A vacuum cleaner, also known simply as a vacuum or a hoover, is a device that causes suction in order to remove dirt from floors, upholstery, draperies, and other surfaces. It is generally electrically driven. The dirt is collected by either a ...
s and home cleaning accessories, located in
Cleveland Cleveland ( ), officially the City of Cleveland, is a city in the United States, U.S. U.S. state, state of Ohio and the county seat of Cuyahoga County, Ohio, Cuyahoga County. Located in the northeastern part of the state, it is situated along ...
,
Ohio Ohio () is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Of the List of states and territories of the United States, fifty U.S. states, it is the List of U.S. states and territories by area, 34th-l ...
, United States. It is a division of Right Lane Industries. Dealers are located in over 50 countries throughout the world. Kirby's products are only sold via in-home
door-to-door Door-to-door is a canvassing technique that is generally used for sales, marketing, advertising, evangelism or campaigning, in which the person or persons walk from the door of one house to the door of another, trying to sell or advertise a pro ...
demonstrations and the company is a member of the Direct Selling Association. All of the vacuum cleaners are built in either Ohio or Texas.


History

Jim Kirby (1885–1971) designed the first Kirby vacuums for George Scott and Carl Fetzer after
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
, although the Kirby name was not used on a vacuum cleaner until the 1930s. James Kirby invented the "vacuette" circa 1920. The company's primary competitors included
The Hoover Company The Hoover Company is a home appliance company founded in Ohio, United States. It also established a major base in the United Kingdom; and, mostly in the 20th century, it dominated the electric vacuum cleaner industry, to the point where the Ho ...
and The Eureka Company, both of which began operations in 1909, as well as
Bissell Bissell Inc., also known as Bissell Homecare, is an American privately owned vacuum cleaner and floor care product manufacturing corporation headquartered in Walker, Michigan in Greater Grand Rapids.carpet sweepers in 1876. Their primary European competitor was
Electrolux Electrolux AB () is a Swedish multinational home appliance manufacturer, headquartered in Stockholm. It is consistently ranked the world's second largest appliance maker by units sold, after Whirlpool. Electrolux products sell under a variety ...
, which started 1924. Dyson,
Miele Miele ( ; ) is a German manufacturer of high-end domestic appliances and commercial equipment, headquartered in Gütersloh, Ostwestfalen-Lippe. The company was founded in 1899 by Carl Miele and Reinhard Zinkann, and has always been a family-o ...
and
Sebo SEBO is the brand name of vacuum cleaners made by Stein & Co GmbH, a company based in the German town of Velbert. They produce a range of upright and cylinder vacuum cleaners for domestic and commercial use. Sebo vacuum cleaners are endorse ...
followed in the 1980s.Joseph P. Cahill, ''The Wall Street Journal'' (October 4, 1999). Introduced in 1925, the Vacuette Electric featured a removable floor nozzle and handle and became the forerunner of current multi-attachment Kirby vacuum models. In 1935, the company introduced the Kirby Model C, the first product to carry Jim Kirby's name.The Scott Fetzer Company, "A History of Quality, Reliability & Performance" (#739807 copyright 2007) The Vacuette was briefly offered as a
manual vacuum cleaner The manual vacuum cleaner was a type of non-electric vacuum cleaner, using suction to remove dirt from carpets, being powered by human muscle, similar in use to a manual lawn mower. Its invention is dated to the second half of the 19th century, ...
, utilizing a spring-loaded
worm gear A worm drive is a gear arrangement in which a worm (which is a gear in the form of a screw) meshes with a worm wheel (which is similar in appearance to a spur gear). The two elements are also called the worm screw and worm gear. The terminol ...
driven by pulling the vacuum cleaner backwards; when pushing the machine forward, the worm gear would power a turbine that provided suction. As long as the cleaner was consistently pulled backwards, tension in the spring would remain constant and the turbine would continue spinning. It was designed for rural areas that did not have electricity and was very similar to the carpet sweeper. One of the features of the Kirby system is the modular design of both vacuum and accessories, allowing machines to be configured for numerous uses, from normal floor cleaning to furniture shampooing and as a compact, handheld vacuum (despite its weight). This versatility also provides for add-on sales or bundling of the complete system. Kirby has remained with its original design, materials and functionality with enhancements added to aid in its operation and durability. The company changes the appearance of the cleaner with revised color schemes and introduces new models with a similar core design. The attachments and appearance items are interchangeable between generations and some machines consist of parts from multiple models. Machines built in the 1930s, 40s, 50s and 60s are in operation worldwide and can be repaired or rebuilt with parts from the factory. In the 1930s and the 1940s, Kirby started to offer their products in retail environments, and introduced the "R" series. They are identical to their "C" series, with differences being the power switch installed on the handle. The first model was the R, followed by the 2R, 3R and 4R. In 1970, input from Kirby distributors, dealers, management and customers guided Kirby engineers in developing the Kirby Classic. This ushered in the second generation models and was an instant success, with soaring sales, allowing the company to expand its manufacturing facilities outside of Cleveland for the first time. This coincided with the rising popularity of wall-to-wall custom installed carpet. In 1972, Kirby West began operations in
Andrews, Texas Andrews is the county seat of Andrews County in the Permian Basin of West Texas. Andrews sits to the far southwest within the Texas Panhandle's plains, about 30 miles east of New Mexico. Andrews was incorporated on February 2, 1937. Both th ...
at 1345 NW 101 Street (also known as North Seminole Highway), which doubled the company's manufacturing capacity. The company maintained a presence in Canada, located at 1009 Burns Street East in Whitby, which is no longer staffed. Berkshire Hathaway bought Kirby parent Scott Fetzer in 1986 for $315 million. Two years prior,
Ivan Boesky Ivan Frederick Boesky (born March 6, 1937) is a former American stock trader who became infamous for his prominent role in an insider trading scandal that occurred in the United States during the mid-1980s. He was charged and pled guilty to insi ...
had offered to buy Scott Fetzer for $60 a share, or $420 million.
Warren Buffett Warren Edward Buffett ( ; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway. He is one of the most successful investors in the world and has a net ...
has singled out Scott Fetzer to Berkshire's shareholders as the "prototype" for the "kind of company — and acquisition — he was interested in." According to Berkshire managers, "absolutely no changes were made to the existing Scott Fetzer business or management, and the entire business (and its jet) was preserved." , Kirby is the largest source of revenue and profit for Scott Fetzer, with approximately 500,000 sales per year, about a third of which are outside the United States.Miles, 2003, p. 276. In 2003, Scott Fetzer sold the vacuums to about 835 factory distributors, who in turn sell the vacuums door-to-door. As an incentive to new customers, Kirby offers the Service Center Vacuum Rebuild Program for original owners who have been registered with the company. As long as the customer owns the machine as the registered owner, if the cleaner needs repair, they can send it back to the Rebuild Department and have it restored to "like-new" condition. The company will completely disassemble it, repair or replace any worn Kirby parts, and sandblast, polish and buff metal parts back to a shiny "new" appearance. Internal components are also thoroughly inspected and repaired with Kirby replacement parts so that it will perform as originally designed. In 2021, Berkshire Hathaway sold Kirby to the
Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...
,
Illinois Illinois ( ) is a state in the Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolitan areas include, Peoria and Rock ...
based Right Lane Industries, ending its long history with Scott Fetzer.


Models

* The Wireless Vacuette (1919-1925) * The Vacuette Electric (1925-1928) * Scott Fetzer Sanitation System (1928-1934) * Kirby Model C/R (1934-1937) * Kirby Model 2C/2R (1937-1939) * Kirby Model 3C/3R (1939-1940) * Kirby Model 4C/4R (1940-1941) * Kirby Model 505 (1945-1948) * Kirby Model 508 (1948-1949) * Kirby Model 509 (1949-1950) * Kirby Model 510 (1950-1951) * Kirby Model 511 (1951-1952) * Kirby Model 512 (1952-1953) * Kirby Model 513 (1953-1954) * Kirby Model 514 (1954-1955) * Kirby Model 515 (1955-1956) * Kirby Model 516 (1956-1957) * Kirby Model 517 (1957-1958) * Kirby Model 518 (1958-1959) * Kirby Model 519 (1959-1960) * Kirby Model 560 (1960-1961) * Kirby Model 561 (1961-1962) * Kirby 562 Sanitronic (1962-1963) * Kirby Sanitronic VII (1963-1965) * Kirby Dual Sanitronic 50 (1965-1967) * Kirby Dual Sanitronic 80 (1967-1969) * Kirby Classic 1CR (1969-1973) * Kirby Classic Omega 1CB (1973-1976) * Kirby Classic III 2CB (1976-1979) * Kirby Tradition 3CB (1979-1981) * Kirby Heritage 1HD (1981-1984) * Kirby Heritage II 2HD (1984-1987) * Kirby Heritage II Legend 2HD (1987-1989) * Kirby Legend II 2HD (1989-1991) * Kirby Generation 3 (1990-1993) * Kirby G4 (1993-1997) * Kirby G5 (1997-1999) * Kirby Gsix (1999-2002) * Kirby Ultimate G (2002-2003) * Kirby Ultimate G Diamond Edition (2003-2006) * Kirby Sentria (2006-2012) * Kirby Sentria II (2012-2014) * Kirby Avalir (2014-2017) * Kirby Avalir 2 (2017–Present)


Commercial/Misc Models

* Kirby Utility Handvac (1935) * American Lincoln Super Sweep (1972-1978) * Super Vac 180 (1978-1982) * Kirby ComVac 1300 (1982-1984) * Kirby ComVac 1600 (1982-1984) * Kirby ComVac 2200 (1982-1982) * Kirby ComVac 2400 (1982-1982) * Kirby ComVac 2600 (1982-1982) * Kirby ComVac 2800 (1982-1982) * Kirby Split Second (1984-1987) * Kirby Split Second 2 (1987-2015) * Kirby Vacuette Handvac (1989-2010) * Kirby Split Second 3 (2015–Present)


Legacy Sales

A major facelift was done to the Kirby line with the Generation 3 series in 1990, with G3 and later models maintaining a traditional form, but with a modern look. Internal improvements between models has continued (such as HEPA filtration, beginning with the Gsix in 1999), but outward changes throughout the entire Kirby production have been mostly in color scheme or minor detail. Pricing of used Kirby vacuums can vary widely. A number of companies offer refurbished vacuums.


Criticism of marketing and sales practices

The practices of some of Kirby's independent distributors have been subject to criticism. The Kirby is included by Lon L. Fuller and Melvin A. Eisenberg, Professors of Contract Law at
Harvard Law School Harvard Law School (Harvard Law or HLS) is the law school of Harvard University, a private research university in Cambridge, Massachusetts. Founded in 1817, it is the oldest continuously operating law school in the United States. Each c ...
and
UC Berkeley School of Law The University of California, Berkeley, School of Law (commonly known as Berkeley Law or UC Berkeley School of Law) is the law school of the University of California, Berkeley, a public research university in Berkeley, California. It is one of 1 ...
/
Columbia Law School Columbia Law School (Columbia Law or CLS) is the law school of Columbia University, a private Ivy League university in New York City. Columbia Law is widely regarded as one of the most prestigious law schools in the world and has always ranked i ...
, as a textbook example of
unconscionability Unconscionability (sometimes known as unconscionable dealing/conduct in Australia) is a doctrine in contract law that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining ...
. Kirby has been subject to relentless criticism by consumer protection agencies. As of 1999, of the 22 state consumer protection agencies, 15 had received a total of more than 600 complaints in just a few years. Between 1996 and 1999, the
Wisconsin Department of Agriculture, Trade, and Consumer Protection The Wisconsin Department of Agriculture, Trade and Consumer Protection is a governmental agency of the U.S. state of Wisconsin responsible for regulating agriculture Agriculture or farming is the practice of cultivating plants and livestock ...
received 50 complaints regarding Kirby dealers, and concluded from its investigation that Kirby, through its distributors, engaged in a "statewide pattern of trade practices" violation of state consumer-protection laws. The ''Wall Street Journal'' records examples where an elderly couple was unable to remove three Kirby salesmen from their home for over five hours; in another example, a disabled woman who had been living alone in a mobile home on $1000/month in
Social Security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
payments and suffering from
Alzheimer's disease Alzheimer's disease (AD) is a neurodegenerative disease that usually starts slowly and progressively worsens. It is the cause of 60–70% of cases of dementia. The most common early symptom is difficulty in remembering recent events. As ...
was discovered to own two Kirby vacuum cleaners, having paid $1,700 for the second one. In 2002, the Florida Agriculture and Consumer Services Commissioner obtained $13,000 in refunds for 13 senior citizens. According to the ''Wall Street Journal'', the device "costs more than four times what other top-of-the-line vacuum cleaners do." Kirby compares the price difference to that between luxury and economy cars, yet "luxury-car dealers don't make house calls in trailer parks. But Kirby dealers do." The Kirby vacuum cleaner is "marketed exclusively door-to-door — often to people who cannot afford a $1,500 gadget, but succumb to the sales pitch nonetheless." In 2001, the West Virginia Attorney General obtained more than $26,000 in refunds and credits for dissatisfied Kirby buyers. In 2002, ABC's ''
Primetime Prime time or the peak time is the block of broadcast programming taking place during the middle of the evening for a television show. It is mostly targeted towards adults (and sometimes families). It is used by the major television networks to ...
'' conducted a hidden-camera investigation in response to more than a thousand complaints regarding Kirby's salespeople.Greg Dawson, "Kirby Always Cleaning Up After Others," Orlando Sentinel (August 27, 2004). In June 2004, the Arizona Attorney General filed suit against Kirby distributors for violations of the
Telemarketing and Consumer Fraud and Abuse Prevention Act The Telemarketing and Consumer Fraud and Abuse Prevention Act () is a federal law in the United States aimed at protecting consumers from telemarketing deception and abuse. The act is enforced by the Federal Trade Commission. The act expanded cont ...
, seeking an injunction against any other home sales. Public authorities flooded with complaints about Kirby vacuum cleaners is not a recent phenomenon; even in the 1960s and 1970s, Kirby had been "cited by various agencies a number of times" and the Detroit Better Business Bureau had received so many complaints that it decided to turn the matter over to the Wayne County prosecutor. Kirby asserts it is not liable for the actions of its sales force, whom it describes as
independent contractor Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any ...
s. Its "Distributor Code of Ethics" enumerates 12 principles, including "observe the highest standards of character, honesty and integrity in dealings with my customers, fellow Distributors and other members of the Kirby profession." Kirby also asserts that it teaches its distributors direct-sales laws, and that it requires them to resolve complaints within 24 hours under threat of termination.


Litigation

Between 1998 and 2001, in Alabama alone, more than 100 lawsuits were filed against Kirby and its affiliates and subsidiaries, resulting in nearly $2 million in judgements and settlements. Twelve distributors of Kirby vacuums in Massachusetts were cited for violations of the Commonwealth's wage and hour laws by the Massachusetts Attorney General's Office in July 2010. The 12 distributors were cited for a variety of different wage and hour violations including nonpayment of wage, nonpayment of minimum wage, misclassification, child labor, retaliation and record-keeping violations. The distributors were fined a total of $199,300 for the violations and also ordered to pay restitution.


Sexual assault

The Supreme Court of Texas held Kirby liable for a rape committed by one of its door-to-door salesmen, finding that the manufacturer maintained control of its distributors and their salespeople, by requiring its distributors to make sales via in-home visits, and that the risk was foreseeable. In that case, the court found that — had the employee's references been checked — Kirby would have discovered complaints of inappropriate sexual behavior at his previous employer and an arrest and deferred adjudication for indecency with a child. The
North Dakota Supreme Court The North Dakota Supreme Court is the highest court of law in the state of North Dakota. The Court rules on questions of law in appeals from the state's district courts. Each of the five justices are elected on a no-party ballot for ten year t ...
also held Kirby liable in a similar rape incident, where the salesman was hired after being convicted of assault and with charges of criminal sexual misconduct in the third degree pending against him.


Fraud and RICO

A federal class-action lawsuit is pending against Kirby under the civil action provisions of the
Racketeer Influenced and Corrupt Organizations Act The Racketeer Influenced and Corrupt Organizations (RICO) Act is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. RICO was en ...
(RICO), for allegedly selling used vacuums as new; the complaint alleges that "Not only is Kirby aware of this practice, it 'participates in the scheme by, among other things, selling to its distributors duplicate or replacement "Original Purchaser's Registration" cards to be given to secondhand purchasers.'"''Jordan v. Scott Fetzer Co.'', 2007 WL 4287719 (M.D. Ga 2007). The complaint also alleges that "Kirby commonly sells distributors new empty boxes and packaging material for the obvious purpose of repackaging units that the distributor previously sold to a prior customer." Kirby's motion to dismiss was rejected. After Kirby refused
discovery Discovery may refer to: * Discovery (observation), observing or finding something unknown * Discovery (fiction), a character's learning something unknown * Discovery (law), a process in courts of law relating to evidence Discovery, The Discove ...
requests for its sales contracts and other documents, Judge Clay D. Land compelled Kirby to disclose the requested documents. A class-action lawsuit was also filed against Kirby in Bullock County Court in Alabama over its sales practices, specifically its use of credit cards issued expressly to fund Kirby purchases, under Truth in Lending laws. Kirby succeeded in persuading a trial judge to recuse himself.


Actions against unauthorized dealers

Kirby has sued unauthorized Kirby vacuum dealers for United States
trademark infringement Trademark infringement is a violation of the exclusive rights attached to a trademark without the authorization of the trademark owner or any licensees (provided that such authorization was within the scope of the licence). Infringement may ...
where the vacuums are identified by the Kirby name and logo. The
United States Court of Appeals for the Fifth Circuit The United States Court of Appeals for the Fifth Circuit (in case citations, 5th Cir.) is a federal court with appellate jurisdiction over the district courts in the following federal judicial districts: * Eastern District of Louisiana * ...
has held that such use does not constitute trademark infringement. The
United States Court of Appeals for the Ninth Circuit The United States Court of Appeals for the Ninth Circuit (in case citations, 9th Cir.) is the U.S. federal court of appeals that has appellate jurisdiction over the U.S. district courts in the following federal judicial districts: * District ...
vacated an injunction granted in Kirby's favor by a lower court in that Circuit based on similar trademark claims against an unauthorized distributor. Kirby also did not prevail in a similar action against an unauthorized dealer in Minnesota, where it asserted trademark infringement, false and unfair competition, and trade disparagement; the authorized dealer prevailed on a $90,000 counterclaim against Kirby for defamation and then in a suit against an insurer who refused to defend the suit when the dealer refused Kirby's settlement offer. Kirby's parent lost another such suit in Minnesota based on trademark infringement and other related state law claims. Nor did Kirby prevail in a tortious interference with contractual relations claim in Washington against an unauthorized retailer; the
Washington Supreme Court The Washington Supreme Court is the highest court in the judiciary of the U.S. state of Washington. The court is composed of a chief justice and eight associate justices. Members of the court are elected to six-year terms. Justices must retire ...
awarded attorney's fees to the retailer. However, Kirby has prevailed in cases where unauthorized retailers went farther than using the name and logo to identify the vacuum cleaner, misrepresenting themselves as the manufacturer and claiming the existence of factory warranty.''Scott Fetzer Co. v. Gehring'', 288 F.Supp.2d 696 (E.D. Pa. 2003).


References


Bibliography

*Miles, Robert P. 2003. ''The Warren Buffett CEO: Secrets from the Berkshire Hathaway Managers''.


External links

* {{Berkshire Hathaway Berkshire Hathaway Manufacturing companies based in Cleveland Vacuum cleaner manufacturers Home appliance manufacturers of the United States