Florists' Transworld Delivery Files Lawsuit Against Provide Commerce, DBA ProFlowers, for 'False and Misleading' Advertising
24 Agosto 2005 - 8:00AM
PR Newswire (US)
- Flowers are not shipped 'direct from the fields' to the customer
as advertised by ProFlowers DOWNERS GROVE, Ill., Aug. 24
/PRNewswire-FirstCall/ -- FTD Group, Inc. (NYSE:FTD), a leading
provider of floral services and products, today announced that its
subsidiary, Florists' Transworld Delivery Inc., has filed a
complaint in Federal District Court in Chicago asserting false
advertising claims against Provide Commerce, Inc. (NASDAQ:PRVD),
doing business as ProFlowers. The lawsuit states that ProFlowers'
claims that "flowers are picked the day before -- or sometimes the
day of -- the order, and are then shipped direct to the customer
with no middlemen involved," are false and misleading. The lawsuit
also asserts that ProFlowers misleads consumers by stating that its
flowers are "shipped direct [or fresh, or straight] from the
fields, bypassing middlemen, extended stays in refrigerators or
warehouses before they reach your doorstep." Michael J. Soenen,
President and Chief Executive Officer of FTD, said, "FTD has nearly
100 years of experience serving consumers' most important floral
needs. We welcome competition, but it should be fair competition
that does not mislead consumers through deceptive claims." As the
lawsuit explains in detail, ProFlowers does not, contrary to its
advertised claims, ship its flowers "direct from the fields" or
"cut flowers from a field on Day One and have them in consumers'
hands on Day Two or Three." Rather, in documents filed with the
U.S. Securities and Exchange Commission, ProFlowers discloses that:
-- it owns a refrigerated warehouse in Miami, where it often stores
many of its flowers before they are sent to consumers; -- that it
uses at least five other refrigerated warehouses around the
country, owned by third-parties, where flowers are often stored
before they are sent to consumers; and -- that it actually keeps
flowers in inventory, especially at busy holiday times, meaning
they are not cut to order as said in many of ProFlowers'
advertisements. "After a thorough investigation of the facts, we
decided that FTD must take action against ProFlowers' practices,
which we believe are deceptive and misleading, and defend the many
high-quality florists, who for generations, have delivered
beautiful flowers and a wonderful experience for their customers,"
Soenen said. FTD's lawsuit asks the Court to make ProFlowers: --
stop making further false or misleading statements regarding the
freshness of their or their agents' products and services; -- make
ProFlowers engage in an effective corrective advertisement
campaign; and -- make ProFlowers compensate FTD for ProFlowers'
acts of unfair competition. FTD reaffirms its first quarter and
fiscal year 2006 outlook that was announced on August 9, 2005. The
complaint is an exhibit to FTD Group Inc.'s 8K regarding this
matter. ABOUT FTD GROUP, INC. FTD Group, Inc. is a leading provider
of floral-related products and services to consumers and retail
floral locations in the approximately $14 billion U.S. floral
retail market. Our business is supported by the highly recognized
FTD brand, which was established in 1910 and enjoys 96% brand
recognition among our principal target market of U.S. consumers, as
well as by the Mercury Man logo, which is displayed in
approximately 50,000 floral shops globally. We conduct our business
through two operating segments. The Consumer Business segment,
primarily through the http://www.ftd.com/ Web site and the
1-800-SEND-FTD toll-free telephone number, offers same-day delivery
of floral orders to nearly 100% of the U.S. and Canadian
populations. As a result of the same-day delivery capability and
broad product selection, the Consumer Business segment is one of
the largest direct marketers of floral arrangements and specialty
gifts in the U.S. The Florist Business segment provides a
comprehensive suite of products and services to enable the network
of approximately 20,000 FTD members to send and deliver floral
orders. FTD members are able to expand their revenues and reduce
their operating costs by participating in the inter-city floral
delivery market and utilizing FTD's business services, technology,
branded merchandise and improved operating practices.
FORWARD-LOOKING STATEMENTS This press release contains various
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 regarding the Company's
outlook, anticipated revenue growth and profitability; the
anticipated benefits of investments in new products, programs and
offerings; and opportunities and trends within both the Consumer
and Florist Business segments, including opportunities to expand
these businesses and capitalize on growth opportunities or increase
penetration of service offerings. These forward-looking statements
are based on management's current expectations, assumptions,
estimates and projections about the Company and its industry.
Investors are cautioned that actual results could differ from those
anticipated by the forward-looking statements as a result of: the
Company's ability to acquire and retain FTD member florists and
continued recognition by members of the value of the Company's
products and services; the acceptance by members of the new or
modified service offerings recently introduced; the Company's
ability to sell additional products and services to member
florists; the Company's ability to expand existing marketing
partnerships and secure new marketing partners within the Consumer
Business segment; the success of the Company's marketing campaigns;
the ability to retain customers and maintain average order value
within the Consumer Business segment; the existence of failures in
the Mercury Network or the Company's Consumer Business segment
systems; competition from existing and potential new competitors;
levels of discretionary consumer purchases of flowers and specialty
gifts; the Company's ability to manage or reduce its level of
expenses within both the Consumer and Florist Business segments;
actual growth rates for the markets in which the Company competes
compared with forecasted growth rates; the Company's ability to
increase capacity and introduce enhancements to its Web sites; and
the Company's ability to integrate additional partners or
acquisitions, if any are identified. These factors, along with
other potential risks and uncertainties, are discussed in the
Company's reports and other documents filed with the Securities and
Exchange Commission. We expressly disclaim any obligation to update
forward-looking statements. For More Information, Contact: Lisa A.
Witek, 630-719-6174 FTD Group, Inc. Joseph Poulos, 312-240-2719 Kim
Metcalfe, 312-240-2743 Edelman DATASOURCE: FTD Group, Inc. CONTACT:
Lisa A. Witek of FTD Group, Inc., +1-630-719-6174, or ; or Joseph
Poulos, +1-312-240-2719, or , or Kim Metcalfe, +1-312-240-2743, or
, both of Edelman Web site: http://www.ftd.com/
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