Good Fortune: The Story of Miss Cleo's $1 Billion Psychic Empire

The woman sat behind a table, tarot cards in front of her, a turban wrapped tightly around her head. In Jamaican-accented patois, she invited viewers to benefit from her gift of second sight. “Call me now,” Miss Cleo said, and she would reveal all.

Mostly, respondents wanted to know if a lover was cheating on them, though there was no limit to Miss Cleo's divinity. No question was too profound. She could speak with as much wisdom about concerns over financial choices as she could sibling rivalries. Her only challenge was time: Miss Cleo could connect with only a fraction of the people looking for her spiritual guidance, leaving callers in the hands of other (potentially psychically-unqualified) operators.

Still, Miss Cleo became synonymous with psychic phenomena, a way to consult with a medium without getting off your living room couch. From 1997 to 2002, she was a virtually inescapable presence on television—the embodiment of a carnival stereotype that annoyed native Jamaicans, who bristled at her exaggerated accent. It was nonetheless effective: Roughly 6 million calls came in to Miss Cleo over a three-year period, with $1 billion in telephone charges assessed.

Not long after, the companies behind Miss Cleo would be forced to give half of that back amidst charges that they had misled consumers. Despite being a cog in the machine, Miss Cleo herself was vilified. Of the $24 million her hotline raked in monthly, she claimed to have earned just 24 cents a minute, or approximately $15 an hour.

Most people didn’t know she was born in Los Angeles, not in Jamaica; that her real name was Youree Dell Harris; and that her late-night infomercial promising psychic assistance was little more than performance art.

 

Harris may have been raised in California, but Miss Cleo was born in Seattle. While living in Washington in the 1990s, Harris tried her hand at playwrighting, authoring a play titled For Women Only under the name Ree Perris, which she performed at Seattle's Langston Hughes Performing Arts Center. In it, Harris wrote and portrayed a Jamaican woman named Cleo, a clear predecessor to the character that would later pop up in television ads.

After producing three plays, Harris left Seattle amid allegations that she had taken grant money from the Langston Hughes Advisory Council, leaving some of the cast and crew unpaid. (Harris later said she left Seattle due to wanting to distance herself from a bad relationship. She told colleagues she had bone cancer and was leaving the area but that they would be paid at a later date.) She ended up in Florida, where she responded to an ad seeking telephone operators. Harris taped a commercial in character as Cleo—the hotline added the “Miss”—for $1750 and then agreed to monitor a phone line for a set wage. Operators made between 14 and 24 cents a minute, she later said, and she was on the higher end.

Psychic premonitions can be difficult to validate, though Harris never claimed to be a medium. In her own words, she was from a “family of spooky people” and was well-versed in voodoo thanks to study under a Haitian teacher. The Psychic Readers Network and Access Resource Services, a set of sister companies that used workers sourced by a third party for their hotlines, recoiled at the word voodoo and declared her a psychic instead.

If Harris was the genuine article, many of her peers were not. As subcontractors who were not employed by the Psychic Readers Network or Access directly, some responded to ads for “phone actors” and claimed they were given a script from which to work. (Access later denied that operators used a script.) The objective, former "psychics" alleged, was to keep callers on the line for at least 15 minutes. Some customers, who were paying $4.99 a minute for their psychic readings, received phone bills of $300 or more.

When the Federal Trade Commission (FTC) began responding to complaints in 2002, it was not because Harris was portraying a character or because she may have not been demonstrably psychic. It was because the Psychic Readers Network and Access were accused of deceptive advertising. Miss Cleo would urge viewers to call a toll-free 800 number, where operators would then refer them to a paid 900 line to reach a psychic. Miss Cleo also pledged that the first three minutes were free. That was true, though those first three minutes were largely spent on hold.

When people began to dispute their phone charges, Psychic Readers Network and Access were alleged to have referred accounts to collection agencies. Even if a telephone carrier like AT&T canceled the charges, customers would still find themselves subject to harassment over unpaid debt.

Individual states like Missouri and Florida sued or fined the companies, but it was the FTC that created the largest storm cloud. Of the $1 billion earned through the hotline, $500 million remained uncollected from stubborn or delinquent consumers. In a complaint and subsequent settlement, the FTC ordered those debts canceled and imposed a $5 million fine on the companies. Psychic Readers Network and Access did not admit to any wrongdoing.

As for Miss Cleo: Harris was only briefly named in the Florida lawsuit before she was dropped from it; the FTC acknowledged that spokespersons couldn’t be held liable for violations. But the association was enough, and newspaper reporters couldn’t resist the low-hanging fruit. Most headlines were a variation of, “Bet Miss Cleo didn’t see this one coming.”

 

Outed as a faux-Jamaican and with her Seattle past further damaging her reputation, Harris faded from the airwaves. Her fame, however, was persistent. She recorded a voice for a Grand Theft Auto: Vice City game for a character that strongly resembled her onscreen psychic. Private psychic sessions were also in demand, with Harris charging anywhere from $75 to $250 per person. Her Haitian-inspired powers of deduction, she said, were genuine.

Eventually, enough time passed for Miss Cleo to become a source of nostalgia. In 2014, General Mills hired her to endorse French Toast Crunch, a popular cereal from the 1990s that was returning to shelves. Following both the Grand Theft Auto and General Mills deals, Psychic Readers Network cried foul, initiating litigation claiming that the Miss Cleo character was their intellectual property and that Harris's use was a trademark and copyright violation. General Mills immediately pulled the ads. (The argument against Rockstar Games, which produced Grand Theft Auto, was late in coming: Psychic Readers Network brought the case in 2017, 15 years after the game’s original release. The lawsuit is ongoing.)

Unfortunately, Harris’s continued use of the image would shortly become irrelevant. She died in 2016 at age 53 following a bout with cancer. Obituaries identified her as “Miss Cleo” and related her longtime frustration at being associated with the FTC lawsuit. “According to some articles, I’m still in jail,” she told Vice in 2014. Instead, she was where she had always been: Behind a table, listening, and revealing all.

A Timeless History of the Swatch Watch

Jeff Schear, Getty Images for Swatch
Jeff Schear, Getty Images for Swatch

A curious sight surrounded retail watch counters in the 1980s and early 1990s. The crowds that gathered as salespeople put new Swatch watches out for purchase resembled something out of the Cabbage Patch Kid craze of just a few years earlier. Shoppers would jostle one another in the hopes of scoring one of the $30 plastic timepieces, which came in a variety of colors and designs. The demand was such that sellers often set a one-watch-per-customer limit.

That’s where the odd behavior came in. Customers would buy a Swatch, leave, then return—this time in a different set of clothes or even a wig in an effort to overcome the allocation and buy a second or third Swatch. The watches were the fashion equivalent of Beanie Babies, though even that craze didn’t quite reach the heights of needing a disguise. Limited-edition Swatches were coveted by collectors who had failed in their pursuit at the retail level and paid thousands for them on the aftermarket. The accessories simultaneously became a fashion statement and an artistic canvas.

More importantly, they also became the savior of the Swiss watch industry, which had been on the verge of collapse.

A person models a Swatch watch on their wrist
Tasos Katopodis, Getty Images for Soho House Chicago

To understand the unique appeal of Swatch, it helps to size up the landscape of the timepiece category in the late 1970s. Swiss watches, long considered the gold standard of timepieces, were being outpaced by quartz-powered digital imports from Japan that were cheap to produce and cheap to sell. Faced with the choice of buying a quality watch for a premium price or opting for a bargain digital model, an increasing number of consumers were choosing the imports. Business was down, factories were closing, and jobs were being lost.

Fortunately, a number of things were happening that would prove to offer salvation for the Swiss. ETA SA, a company that made watches and was headed up by Ernst Thomke, had recently invested in an injection-molding machine at the behest of engineer Elmar Mock. Mock, along with his colleague Jacque Muller, spent 15 months crafting a plastic prototype watch that was one piece and welded together. The significance of a sealed unit was that it economized the entire process, turning watches from handcrafted units to models that could be produced by automation. The watches required just 51 parts instead of the 91 pieces typical of most models at the time. In this way, Thomke, Mock, and Muller had produced a timepiece that was both durable and inexpensive.

The issue was why someone might opt for a Swatch watch over a digital Japanese model. Thomke knew that the idea of a “Swiss watch” still held wide appeal in the same way someone might opt for a real Chicago deep-dish pizza over an imitator’s version. Along with Nicholas Hayek, who later became CEO of the Swatch Group, Thomke believed he had cracked the code for a Swiss watch renaissance. He released the first Swatch in Zurich in March of 1983.

But the manufacturing process that allowed Swatches to come in at a reasonable price was also a problem. Automating the process meant the watches and bands were almost always identical in size and shape. If the watch’s general appearance couldn’t be changed, how could it stand out?

A selection of Swatch watches are seen on display
Anthony Kwan, Getty Images

The answer was in the design. The Swatch name came from a contraction of two words: secondary watch. The idea was that a watch could be analogous to a necktie or other fashion accessory. No one owned just one tie, scarf, or pair of dress shoes. They typically had a rotation. Thomke and Hayek didn't believe a watch should be any different.

At the behest of marketing consultant Franz Sprecher, Swatches were soon flooding stores in an assortment of colors and with different designs on the face of the timepiece itself. They could be coordinated for different outfits or occasions, a practice that became known as “watch wardrobing." Someone who bought a red Swatch for summer lounging might opt for a black Swatch as part of their professional attire. The watches retailed for $30 to $40 apiece, so buying more than one was financially feasible.

That was the concept, anyway. Some U.S. retail stores received their Swatch inventory and didn’t know what to make of what was—on the surface—a cheap plastic watch. Neither did their customers.

What Swatch needed was a marketing plan. That largely fell into the hands of marketing consultant Max Imgruth, who was named president of the company’s American division. Swatch saw their sales rise from $3 million in 1984 to $105 million in 1985. Thanks to an effective advertising campaign and more eclectic color choices, public perception of Swatches put them firmly in the fashion category.

A selection of Swatch watches designed by artist Keith Haring are seen on display
Anthony Kwan, Getty Images

The approach opened up a new market, one Thomke, Hayek, and their colleagues had not quite anticipated: Collectors were rabid about Swatches.

To keep their biannual collections of 22 to 24 watch releases fresh, Swatch began recruiting a number of collaborators to design extremely unique offerings. In 1984, they enlisted artist Kiki Picasso to design a series. The following year, Keith Haring designed his own collection. In a kind of prelude to the sneaker design phenomenon of the 1990s and beyond, these collaborators put their own distinctive stamps on the Swatches, which acted as a kind of canvas for their artistic expression.

Between third-party designers and contributions from Swatch’s Milan, Italy, design team, collectors couldn’t get enough. There was the Swatchetables line, which imagined the Swatches in a series of food-related motifs—a red-hot chili pepper Swatch, a cucumber Swatch, and a bacon-strap and egg-faced Swatch. The entire set sold for $300 and only at select food markets, quickly shooting up to $2400 in the secondary market. (Like all aftermarket Swatches, they needed to be kept in their plastic retail case in order to realize their full value.) Some resellers bought up stock in New York, then resold them for three times the price in Italy.

The 1985 “Jellyfish” model was transparent. The 1989 “Dadali” had a face with Roman numerals that appeared to be melting off the face and onto the strap. Swatches came with cuffs to honor Mozart or adorned with synthetic fur. There were Mother’s Day editions and editions celebrating the 200th anniversary of the French Revolution. Some of the straps were scented.

A selection of Swatch watches are seen on display
Anthony Kwan, Getty Images

The possibilities were endless, and so was the consumer appetite. (Except for yellow straps, which traditionally sold poorly.) Collectors camped out for Swatches at retailers or hundreds of Swatch-exclusive stores around the country. Affluent collectors dispatched employees to different retailers in the hopes of finding a limited-edition watch for retail price. If they failed, some had no problem paying thousands of dollars at auction. A Kiki Picasso Swatch, one of a very limited 121 pieces total, sold for $28,000 in 1992.

Though no one wears disguises to acquire Swatch watches anymore, the company is still issuing new releases. And while the company has seen a decline in sales over the years—the rise of smartwatches like the Apple Watch and Fitbit continue to eat into their marketing share—affection for the brand is unlikely to disappear entirely anytime soon. In 2015, one of the world’s largest collections of Swatches—5800 pieces—went up for sale, and ultimately fetched $6 million.

The Rise, Fall, and Resurgence of the Fanny Pack

Matt Cowan, Getty Images for Coachella
Matt Cowan, Getty Images for Coachella

Back in 1954, Sports Illustrated ran an advertisement for a leather pouch that was touted as an ideal accessory for cross-country skiers who wanted to hold their lunch and ski wax. Hikers, equestrians, and bicyclists could also benefit from this waist-mounted sack, which was a bit like a backpack situated on the hips.

The “fanny pack” sold for $10 ($95 today). For the next several decades, it remained popular among recreational enthusiasts traveling by bike, on foot, or across trails where hands could be kept free and a large piece of travel luggage was unnecessary. From there, it morphed into a fashion statement, marketed by Gucci and Nike for decorative and utilitarian purposes in the 1980s and '90s, before becoming an ironic hipster joke. Even the name—fanny pack—suggests mirth. But the concept of carrying goods on top of your buttocks was never meant to be a joking matter.

A man sports a ski outfit with a fanny pack in 1969
McKeown/Daily Express/Hulton Archive/Getty Images

Mankind has looked to belt-mounted storage solutions for centuries. Ötzi the Iceman, a 5300-year-old mummy found preserved in a glacier in 1991, had a leather satchel that held a sharpened piece of bone and flint-stone tools. Subsequent civilizations adopted the premise, with Victorian and Edwardian women toting chatelaine purses made of silk or velvet.

The 20th-century obsession with the fanny pack seemingly began on the ski slopes in Europe in the 1960s and '70s. Known as bauchtasche, or stomach bags, in Switzerland, skiers traveling away from the base lodge who wanted to keep certain items—food, money, a map, flares, and occasionally alcohol—within arm's reach wore them proudly. Photographers also found them useful when hiking or traveling outdoors and climbing through obstacles, as they reduced the risk of an expensive camera or lens being dropped or damaged.

Their migration into fashion and the general public happened in the 1980s, due to what Fashion Fads Through American History author Jennifer Grayer Moore dubbed the rise of “athleisure.” This trend saw apparel and accessories typically relegated to sports or exercise—think leggings, track suits, and gym shorts—entering day-to-day use. With them came the fanny pack, a useful depository for keys, wallets, drinks, and other items. They were especially popular among tourists, who could stash travel accessories like cameras and souvenirs without burdening themselves with luggage.

In the late 1980s, fashion took notice. High-end labels like Chanel manufactured premium fanny packs, often with the more dignified name of belt bag. Sporting one was considered cool, as evidenced by their presence in popular culture. The Fresh Prince, Will Smith, wore one. Members of New Kids on the Block were seen with them. Nothing, it seemed, could dissuade people from feeling pragmatic and hip by sporting an oversized pocket on their waist, which they typically pulled to the front.

A model sports a fanny pack, also known as a belt bag, across her shoulder
Hannah Peters, Getty Images

Like most trends, overexposure proved fatal. Fanny packs were everywhere, given out by marketing departments of major brands like Miller Beer and at sports arenas and stadiums. Plastered with corporate logos, they became too crassly commercial for style purposes and too pervasive. By the end of the 1990s, wearing a fanny pack was no longer cool. It was an act that invited mockery and disdain.

The pack, of course, has retained its appeal among outdoor enthusiasts, and lately has been experiencing a resurgence in style circles, with designer labels like Louis Vuitton and Valentino offering high-end pouches. Many are now being modified or worn across the torso like a bandolier (like so), an adaptation prized by skateboarders who want something to hold their goods without hindering movement.

In 2018, fanny packs were credited with a surge in overall accessories sales, posting double-digit gains in merchandise. The fanny pack may have had its day as an accessory of mass appeal, but it’s not likely to completely disappear anytime soon.

SECTIONS

arrow
LIVE SMARTER