Monday, April 30, 2007

Miracle Gro Sues the Little Guy for Organics

"The Scotts Miracle-Gro Company is a $7 billion global business with broad brand recognition, a 59 percent market share, and Roman columns framing the entry to its corporate headquarters. TerraCycle Inc. is a fledging startup with $1.5 million in annual sales, an infinitesimal share of the market, and a graffiti-covered warehouse with used tires on the lawn where the rose bushes were before someone stole them out of the ground.

But Scotts sees similarities between the two plant-food makers. So, the Goliath of plant products sued late last month, accusing TerraCycle of copying its look and falsely claiming that its organic products are better than synthetic ones like Miracle-Gro.

..The plant-food giant also accuses TerraCycle of making false and misleading advertising claims on its Web site and at point-of-purchase displays.

For example, Miracle-Gro claims there is no scientific basis for TerraCycle's claim that it ``outgrows synthetic fertilizers,'' or that it makes ``the most effective, convenient, affordable plant you can buy.'


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