Coupon site hits back at Mary Kay
Austin’s RetailMeNot says cosmetics giant can’t block its business.
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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