Austin American-Statesman

Coupon site hits back at Mary Kay

Austin’s RetailMeNo­t says cosmetics giant can’t block its business.

- By Lori Hawkins lhawkins@statesman.com

Austin-based RetailMeNo­t has rejected claims made in a lawsuit by cosmetic firm Mary Kay Inc. regarding RetailMeNo­t’s use of online Mary Kay coupons.

In the lawsuit filed March 13 in U.S. District Court in Dallas, Mary Kay alleges that RetailMeNo­t is offering online discounts for Mary Kay products without its consent.

RetailMeNo­t operates the world’s leading online marketplac­e for coupon and consumer deals. Its sites provide more than 500,000 coupon codes, free trials and other retail offers from more than 70,000 merchants.

Mary Kay, based in Addison, says RetailMeNo­t’s actions undercut its direct-sales approach, and the company asks that the federal court bar RetailMeNo­t from using its name, slogans, websites and other branding on RetailMeNo­t.com and other websites owned by the company.

The lawsuit also asks for an undisclose­d financial sum for court fees and damages.

In RetailMeNo­t’s response, which was filed Thursday, the company says that Mary Kay is attempting to use trade-

mark law to stifle the free flow of online informatio­n.

“Trademark law does not give bran d owners the unrestrict­ed power to prohibit al l online references to their brand or all online discussion of their products through websites an d online service providers li ke RetailMeNo­t,” the company sa id.

RetailMeNo­t also seeks to recover its co sts including attorneys’ fees. The company released the statement after markets closed. Shares of RetailMeNo­t closed unchanged at $20.90 on Thursday.

RetailMeNo­t, which was founded in 2009, has more than 530 employees, including about 400 in Austin.

The company has grown into an online coupon powerhouse, mostly by buying smaller websites. RetailMeNo­t receives a co mmission, usually averaging 5 pe rcent, from a merchant if a shopper uses one of its coupons.

Earlier this month, the company said it expects revenue of $275 million to $285 million for the year, which is up about 6 percent from 2014. employee

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