Worm Poop Threatens Corporate Profits

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Some of the nation’s biggest corporations have found that baseless lawsuits are often a useful tool for squashing upstart competition. The latest example of this kind of noxious behavior comes from Scotts Miracle-Gro, a $2 billion company that claims 60 percent of the nation’s garden-care market. Earlier this year, Scotts sued the tiny New Jersey start-up TerraCycle, which sells fertilizer made from all-natural worm poop, packaged in recycled soda bottles. Scotts alleges that TerraCycle has copied its packaging design and engaged in false advertising.

TerraCycle was started by college students and has never made a profit, but has made in-roads into some of the bigger retail outlets. Apparently Scotts sees the worm poop as a threat. TerraCycle has fought back mainly with PR. They’ve put up a cheeky website that notes that the Scotts CEO gets a half-million dollars worth of “personal aircraft use” each year, while TerraCycle’s CEO’s biggest perk is unlimited free worm poop. The website also has some funny photos comparing the two companies’ headquarters.

The PR has helped boost sales, but it’s not likely to pay TerraCycle’s legal bills. Scotts has demanded every last piece of paper from the company in discovery–everything from plans for future product development to the worm’s dinner menu–as a way of driving up the costs of litigation. In the meantime, TerraCycle is asking its customers to write letters to the Scotts board asking the company to drop the lawsuit–and also is taking donations.

(H/T Law and More)

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THE BIG PICTURE

You expect the big picture, and it's our job at Mother Jones to give it to you. And right now, so many of the troubles we face are the making not of a virus, but of the quest for profit, political or economic (and not just from the man in the White House who could have offered leadership and comfort but instead gave us bleach).

In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

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