A local fertilizer company started by two former Princeton students has settled a lawsuit brought by Miracle-Gro accusing them of false advertising and trademark infringement.
Though Scotts Miracle-Gro Company did not receive any monetary damages from TerraCycle, Inc. — which Tom Szaky '05 and Jon Beyer '05 founded in 2001 — the fertilizer giant got everything else it sought in the complaint. Two news websites reported that Beyer and Szaky's tiny, Trenton-based company was "forced" to settle in the face of mounting legal fees.
Beyer declined to comment on the settlement because, he said, he was "not 100 percent sure" of what the terms of the settlement allowed him to say publicly.
The settlement, announced last Friday, stipulates that TerraCycle will stop using its green-and-yellow color scheme, which Miracle-Gro alleged was similar enough to its own packaging that it could confuse consumers. TerraCycle will switch to a green and orange pattern — the green will be more easily differentiated from Miracle-Gro's — and remove the images of fruits and vegetables on its labels. The large circle in the center, reminiscent of Miracle-Gro's logo, is also being eliminated. "They didn't like that," Beyer said.
TerraCycle was going to change its labeling anyway, Beyer added, in order to present a more unified look in anticipation of this year's new products.
Additionally, TerraCycle will stop claiming that its plant food is better than "the leading synthetic fertilizer" until it can back the claim up with new testing.
Scotts sued TerraCycle last March after the company refused to hand over test results to support its claims that its fertilizer, which is based on worm droppings, is superior to Miracle-Gro. Miracle-Gro contended that those claims lacked a scientific basis.
In an interview with The Daily Princetonian last April, TerraCycle spokesman Albert Zakes said the company was simply protecting its trade secrets by refusing to release the tests. "Who in the world would want to give such proprietary information to your biggest competitor?" he said.
During the same interview, Szaky told the 'Prince' that the lawsuit was unfounded and that he planned to "battle this out as much as we can with the resources that we have."
But in a statement released jointly with Scotts Miracle-Gro last week, Szaky struck a conciliatory tone. "We recognize that Scotts filed this lawsuit based on a legitimate need to uphold the accuracy of advertising claims and protect its trademark rights," he said.
Szaky and Beyer started TerraCycle during their freshman year at the University, dropping out to run the company full time. Their company's products are based on a new kind of composting meant to replicate the natural composting that occurs on the forest floor. The company's product line — packaged in used plastic containers — is now sold alongside Miracle-Gro at nationwide retailers like Home Depot and Wal-Mart.
TerraCycle earned $1.5 million in annual sales last year and employs 45. By its own admission, the company has yet to turn a profit. Miracle-Gro, a multinational corporation, reported $2.7 billion in worldwide sales last fiscal year.
When the lawsuit was filed last spring, Szaky created the blog suedbyscotts.com to increase publicity and raise legal funds for the lawsuit. The CEO injected the site with a note of irreverence, posting a list of 120 other garden products with green and yellow label designs and a link to Scotts' financial statement that documented the $555,000 its CEO spent on the company's aircraft. The website will be deactivated as part of the settlement agreement.
Read More
Princeton awards 1,293 degrees to the Class of 2025 as speakers reference political headwinds
Maya MukherjeeReunions and graduation speakers referenced the tense political climate around higher education, adding urgent undertones — and sometimes overtones — to otherwise standard ceremonial speech fare.
Reunions and graduation speakers referenced the tense political climate around higher education, adding urgent undertones — and sometimes overtones — to otherwise standard ceremonial speech fare.
Joseph ’25 next Young Alumni Trustee in 21 percent turnout election
Vitus LarrieuGil Joseph ’25 won the Young Alumni Trustee election, which saw 21 percent turnout. Joseph, Stephen Padlo ’25 and Ben Wachspress ’25 competed in the final round of elections after advancing from a notably large primary in April.
Gil Joseph ’25 won the Young Alumni Trustee election, which saw 21 percent turnout. Joseph, Stephen Padlo ’25 and Ben Wachspress ’25 competed in the final round of elections after advancing from a notably large primary in April.
‘A brilliant young contemporary writer and a beautiful human being’: Remembering Lauren Blackburn ’26
Victoria Davies and Caitlyn TabladaBlackburn was found deceased by authorities on April 25, several days after he was reported missing. He was 23 years old at the time of his death and is remembered by friends and mentors as a brilliant writer, voracious learner, and loving friend. A family obituary said he passed away after a “courageous battle with bipolar disorder.”
Blackburn was found deceased by authorities on April 25, several days after he was reported missing. He was 23 years old at the time of his death and is remembered by friends and mentors as a brilliant writer, voracious learner, and loving friend. A family obituary said he passed away after a “courageous battle with bipolar disorder.”