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Tea Party Exchange shuts down; no word on refunds

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By Lynn Hulsey, Staff Writer Updated 1:07 AM Wednesday, August 18, 2010

DAYTON — The Tea Party Exchange suspended operations on Tuesday, Aug. 17 but founder Donald Hutchinson did not say if he would refund the $150 annual membership fee more than two dozen participating businesses paid him this summer.

“Website and business operations are being stopped until further notice,” he wrote in a news release. “Dayton, Ohio was the test market for Tea Party Exchange. TPX will analyze the results of the test to decide any future decisions.”

Hutchinson did not respond to requests for further comment.

Bill DeFries, owner of Beef O’Brady’s Family Sports Club, said he decided to withdraw from the exchange even before Hutchinson closed it. DeFries, who describes himself as a liberal Republican, said Hutchinson had presented the exchange as a way to increase his customer base at his restaurants in Centerville and Beavercreek. Instead, DeFries received threats and was called a Nazi by one woman.

“I feel like I was hoodwinked,” said DeFries. “I think he was trying to make money.”

The exchange, designed to link conservative consumers and businesses while providing contributions to Tea Party and other affiliated groups, had become controversial since Hutchinson announced it last week.

The number of businesses participating was just more than two dozen after several dropped out when customers complained. Hutchinson was criticized for outsourcing to India database programming for the Tea Party Exchange website.

Hutchinson, co-founder and president of Washington Twp.-based Essex HR and Associates, also dropped the exchange’s discount program on Monday, saying that it had led to confusion about the intent of the program.

Companies paid Hutchinson at least $150 annually to participate and then were to donate to Tea Party groups 5 percent of the amount spent by consumers who carried a TPX-Great American card.

“I think he should refund everybody their money, including me,” said DeFries, who didn’t get a single TPX customer since he joined June 1.

Hutchinson promoted the idea as a way to raise money for Tea Party groups, politically conservative organizations that began cropping up across the country in early 2009. He said the money would help groups supporting limited government, fiscal responsibility and free markets.

Rob Scott, president of Dayton Tea Party, said his group had received $30 from the exchange and had not yet received a July disbursement. He said closing the exchange was Hutchinson’s call.

“It’s his company. I disagree with it. I stood my ground with the Dayton Tea Party,” said Scott. “I understand in the business world you have to be a little more cautious.”

Contact this reporter at (937) 225-7455 or lhulsey@DaytonDailyNews.com.

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