St. Petersburg-centered Catalina Marketing and advertising Corp. has sued Quotient Technological know-how Corp., a competitor that is dependent in Mountain View, Calif., but does a major volume of business enterprise in Florida with customers this kind of as CVS and Southeastern Grocers Inc., the dad or mum firm of Winn-Dixie.
The suit alleges that Quotient, which operates the site Coupon codes.com, engaged in unfair aggressive procedures by featuring unlawful, underneath-price pricing and sending “misleading communications” to makers of customer packaged goods in Florida and specially Pinellas County.
Catalina’s criticism, submitted in Pinellas County Circuit Courtroom, said that Quotient informed CPG brand names that they “were required to divert their business absent from Catalina when in truth it was neither needed nor in their desire to do so. The ensuing disruption in provider triggered damage in Florida — not only to Catalina but to the Florida CPG brand names and suppliers, as well as buyers in Florida who benefited from Catalina’s remarkably specific and successful in-shop promoting services.”
Catalina spokesman Wally Petersen, in an e mail to the Catalyst, reported Catalina declined to remark on the lawsuit and in its place will “let the criticism communicate for by itself.” A telephone contact and electronic mail to Quotient’s community relations office had been not promptly returned, and the case file does not establish the company’s authorized representation. Catalina has retained the providers of Edward Soto of Miami-based law company Weil Gotshal & Manges LLP.
Catalina’s small business is based mostly on assortment and analysis of procuring facts that, according to the lawsuit, lets it to “design and execute promoting strategies for its retail companions.” These kinds of strategies consist of discount coupons and other bargains that incentivize customers to invest in items from leading CPG manufacturers that companion with Catalina. Discount coupons are sent to purchasers by means of in-shop printers Catalina, in the criticism, explained this process benefits in better redemption rates than Quotient’s coupon codes, which are printed at the end of a transaction receipt.
“As Catalina can make clear in the fit,” Petersen wrote, “Quotient’s below-cost pricing and unfair opposition tactics not only hurts Catalina, but also individuals, retailers and CPG companies they all obtain considerable worth from Catalina’s printed coupon codes.”
Catalina’s precise allegations worry a December 2018 try by Quotient to get the business of grocery retail store chain Albertsons, a Catalina shopper at the time.
“Quotient sought to acquire in-keep print coupon company by unfairly obtaining Albertsons’ company,” the grievance states, “and then leveraging that posture unfairly (once again) to obtain small business with additional merchants and CPG makes.” Catalina alleges that Quotient landed the Albertsons account by presenting down below-expense, “predatory” pricing and as a result caused damage to Catalina.
The grievance alleges that Quotient then leveraged its position with Albertsons to strain the grocer’s CPG purchasers to changeover their business from Catalina to Quotient, as of the next quarter of 2019.
“These communications have been misleading,” Catalina mentioned in the lawsuit, “because Catalina’s contracts with its CPG buyers were not especially tied to Albertsons’ enterprise. Also, Quotient was unable to give in-retail outlet advertising and marketing providers throughout Albertsons’ areas for most of 2019.”
Catalina believes Quotient’s outreach misled and sowed confusion among the its customers, resulting in economic damage for the reason that customers had been hesitant to shell out extra advertising and marketing bucks on Catalina promoting plans in 2019.
“As a end result of Quotient’s predatory pricing and deceptive communications,” the grievance reads, “Catalina was no more time in a position to give its in-store marketing services in Albertsons outlets and missing business enterprise from CPG brand names, and Catalina was harmed by shed product sales revenue and other small business chances.”
Catalina’s lawsuit asks the court docket for a jury demo and seeks damages in excessive of $100,000.
This story will be up to date if and when Quotient responds to the Catalyst’s requests for comment.