Saturday, September 22, 2007

TerraCycle and Scotts Announce Settlement Agreement

TerraCycle, Inc. and The Scotts Company have announced the agreed settlement of their legal dispute regarding false advertising claims and trade dress infringement. TerraCycle has agreed to change certain advertising claims and its package design to avoid possible confusion, and Scotts has agreed to dismiss its false advertising and infringement claims. Tom Szaky, the founder and CEO of TerraCycle today said, “We recognize that Scotts filed this lawsuit based on a legitimate need to uphold the accuracy of advertising claims and protect its trademark rights. We also regret certain statements that were made about Scotts in the heat of litigation. Now that the parties have resolved their differences, TerraCycle is looking forward to providing consumers with an array of garden and lawn care products in the marketplace.” Jim King, Scotts spokesperson, said, “Scotts is pleased to resolve this case and believes that the settlement serves the public’s interest in ensuring the accuracy of advertising claims, as well as protection of the valuable Miracle-Gro brand.”

This was the press release forwarded to me by TerraCycle. I am truly glad this lawsuit is over. Honestly, hearing that Scott's Miracle Gro was filing a lawsuit against TerraCycle infuriated me due to the virulent nature of this corporate giant. It feels like our entire nation is governed by top level industries and corporations now rather than our own elected officials. I am not quite sure what the desired outcome was from TerraCycle, however, I am sure that they too are glad that its over. They will have to change some claims and product labels, but if anything they got some great publicity from the lawsuit. Keep up the great work guys, we need more eco friendly companies like TerraCycle.

For more information about TerraCycle and the lawsuit by Scott's Miracle Gro go to my previous post here.



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Covenant said...

HI,

I enjoy reading your blog - thank you for some interesting and quite enjoyable discussions.

I have to disagree with you concerning the terracycle and Scotts MG lawsuit though. based upon the litigation proceedings details, Scotts has invested millions of dollars into its marketing and advertising and has become very successful.

The litigation also requested that data concerning the claim that the terracycle product was better than the leading synthetic alternative (MG). Such a claim in any industry would lead to litigation.

But, I do enjoy your posts and thank you.

Anonymous said...

This comment from "Covenant" is obviously from someone inside Miracle Gro / Scotts. Great response from a corporate giant that tried to squash the little guy.

Hey guess what - they're still around and now have a much stronger following than every before!

Covenant said...

I'm not from Scotts. All false advertising claims need to be reviewed. But it seems the 'little guy' has faired well - obtained much needed media coverage and continues to grow.

I think having companies like Terracycle improve the market, by enhancing competition and creating innovation.

JT said...

Either way, I tend to avoid supporting major corporations in general...unless they were considered "green". Almost all the products I buy are eco-friendly.

Covenant said...

Well said jt. Unfortunately, in this day and age your environmental footprint is huge.

Eco-friendly is not necessarily good. This is clearly evidenced in the homeopathic industry. Were the CAMs to undergo FDA studies, they would never be released to the public. ALso evidenced in CFLs, the mercury they contain is a major landfill pollutant (since most people do not recycle them). But, on saying that, all my light fixtures contain CFLs. But I educate myself on the proper disposal of CFLs.

JT said...

The CAM regulations are the biggest threat to the health food industry. Yes I agree that certain claims should be supported with evidence, but in my opinion the FDA approves more drugs with harmful side effects to support the pharmaceutical industry than the harm that can come from vitamins, minerals, and the entire health food industry could ever do. I do not agree with most of the FDA's actions, as I believe that department in our government which is made up of appointed officials rather than elected, have too much power and do not take the public seriously.

And most eco-friendly products are exactly that...eco-friendly.

i.e. toilet paper and paper towels made from 100% recycled paper, 100% recycled 8 1/2 X 11 office paper, eco-friendly laundrey detergent...made without any harmful chemicals, natural soap, re-usable bags for grocery shopping, bio-degradeable trash bags made from corn starch, bio-degradable diapers, "green" furniture, "green" dish soap, natural toothpaste, natural deodorant, and I even purchase wind energy from my Power Company at a premium price.

most of these products are made from natural products that are not dangerous if swallowed, or in other words free from harmful chemicals aren't petroleum based products.

back to the basics:
hydrogen peroxide: for cleaning, healing, and as an antiseptic

vinegar: cleaning, healing, and salad dressing

literally the list goes on and on

However, you are right that energy efficient CFL's do contain mercury, it is up to the consumer to recycle of them properly and most probably wont. Hybrid Cars need batteries from harmful polluting battery manufacturing plants, yeah another negative, and bio-diesel and ethanol can be debated as a bad eco-product, but...

I think that an eco-conscious consumer like myself who is very aware of everything I buy and use, is smart enough to figure out that my environmental impact is very low compared to that of the average American.

Covenant said...

I agree jt - there are good and bad points with everything we do. But, I do believe that every has educated themselves to such a level as you or I. Most rely heavily on the media for information - frequently this is biased.

As a scientist I have a vast dislike of CAM - it is mostly hoax and snake oil type materials. For instance, the idea of water memory and succussion is very misleading. Take 30c solutions - there is not enough water on the planet to make a 30c solution - as advertised by CAM. There is plenty of scientific evidence to this effect.

JT said...

I am enjoying our little discussion Covenant...yes it is sad that most Americans are mere lemmings that can't think for themselves.

I suppose the hope is that through education, by means of checks and balances from alternative and independent news, the end result is a better society.

Covenant said...

We can only hope JT. But, I will be inline for an all electric car when they come out - can't wait!

Hey, excellent blog. Keep up the good work.

Anonymous said...

In its press release, TerraCycle admits that it didn't have support for its claims that it works better than Miracle-Gro. I supported TerraCycle, and now I'm really disappointed to hear that they were misleading consumers the whole time.