ProFlowers
Encyclopedia
ProFlowers is a major flower
retailer in the United States
. It is an e-commerce company that sells products shipped from growers, suppliers and its own distribution facilities to consumers. ProFlowers is headquartered in San Diego, California
. It is part of a larger entity, Provide Commerce., which is in turn part of Liberty Media
.
in 1998. In February 2006 Liberty Media Corporation (NYSE:L; LMC.B) purchased Provide Commerce, Inc. (Nasdaq: PRVD) for a sum of $477 million in cash, at which point Provide Commerce became a wholly owned subsidiary of Liberty Media. Provide Commerce also offers fruit, sweets and gift baskets direct from the supplier through its Gourmet Food Business Unit, which includes the brand names Cherry Moon Farms, Secret Spoon and Shari's Berries. In 2008 Provide Commerce acquired RedEnvelope, a seller of gifts.
In 2007 Provide Commerce was selected as one of California's Best Places to Work (Sponsored by Employers Group 2007).
(FTD), for false advertising
and unfair competition
in August 2005. The suit focused on ProFlowers' claim to ship "direct from the fields" with "no middlemen", alleging that the company actually often stored flowers in refrigerated warehouses, including those of third parties. For its part, ProFlowers responded that the lawsuit was "without merit" and brought counterclaims against FTD. The lawsuit was settled a year later. ProFlowers did agree to make some modifications to its advertising, although as of February 2008, ProFlowers is once again claiming in its TV commercials that it delivers flowers "straight to the door from the growers' fields".
Two months after the FTD suit was filed, two law firms filed a class action lawsuit claiming that ProFlowers used deceptive marketing, also targeting the company's freshness claims. ProFlowers called it a copycat of the FTD lawsuit. It was settled with ProFlowers not admitting any wrongdoing, but offering $10 store credits to the millions of customers in the class, paying $250,000 in attorneys' fees, and "altering its advertising".
Florist advocacy groups continue to take umbrage at ProFlowers' marketing which disparages the role of the local florist, particularly since ProFlowers itself uses local florists to fulfill its same-day, late next-day and Sunday delivery orders.
In September 2009 a class action lawsuit was filed against Provide-Commerce, the owner of ProFlowers and Encore Marketing the owner of Easy Saver, regarding the practices detailed in the Easy Saver offer detailed below.
Flower
A flower, sometimes known as a bloom or blossom, is the reproductive structure found in flowering plants . The biological function of a flower is to effect reproduction, usually by providing a mechanism for the union of sperm with eggs...
retailer in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. It is an e-commerce company that sells products shipped from growers, suppliers and its own distribution facilities to consumers. ProFlowers is headquartered in San Diego, California
San Diego, California
San Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round...
. It is part of a larger entity, Provide Commerce., which is in turn part of Liberty Media
Liberty Media
Liberty Media Corporation is an American media conglomerate and the control is exercised by company Chairman John C. Malone, who owns a majority of the voting shares....
.
History
ProFlowers, later called "Provide Commerce", was started by Jared PolisJared Polis
Jared Schutz Polis is an American entrepreneur, philanthropist, and U.S. Representative for , serving since 2009. He is a member of the Democratic Party...
in 1998. In February 2006 Liberty Media Corporation (NYSE:L; LMC.B) purchased Provide Commerce, Inc. (Nasdaq: PRVD) for a sum of $477 million in cash, at which point Provide Commerce became a wholly owned subsidiary of Liberty Media. Provide Commerce also offers fruit, sweets and gift baskets direct from the supplier through its Gourmet Food Business Unit, which includes the brand names Cherry Moon Farms, Secret Spoon and Shari's Berries. In 2008 Provide Commerce acquired RedEnvelope, a seller of gifts.
In 2007 Provide Commerce was selected as one of California's Best Places to Work (Sponsored by Employers Group 2007).
Litigation
ProFlowers was sued by its major rival, Florists' Transworld DeliveryFlorists' Transworld Delivery
-Going public:In 1994, FTD began a process of demutualization.On December 19, 1994, a precursor to the FTD Corporation, a private, for-profit company, acquired FTD, which then divided FTD into two organizations: FTD Incorporated, a for profit corporation, and FTD Association, a non-profit trade...
(FTD), for false advertising
False advertising
False advertising or deceptive advertising is the use of false or misleading statements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments around the world use regulations to control false, deceptive or...
and unfair competition
Unfair competition
Unfair competition in a sense means that the competitors compete on unequal terms, because favourable or disadvantageous conditions are applied to some competitors but not to others; or that the actions of some competitors actively harm the position of others with respect to their ability to...
in August 2005. The suit focused on ProFlowers' claim to ship "direct from the fields" with "no middlemen", alleging that the company actually often stored flowers in refrigerated warehouses, including those of third parties. For its part, ProFlowers responded that the lawsuit was "without merit" and brought counterclaims against FTD. The lawsuit was settled a year later. ProFlowers did agree to make some modifications to its advertising, although as of February 2008, ProFlowers is once again claiming in its TV commercials that it delivers flowers "straight to the door from the growers' fields".
Two months after the FTD suit was filed, two law firms filed a class action lawsuit claiming that ProFlowers used deceptive marketing, also targeting the company's freshness claims. ProFlowers called it a copycat of the FTD lawsuit. It was settled with ProFlowers not admitting any wrongdoing, but offering $10 store credits to the millions of customers in the class, paying $250,000 in attorneys' fees, and "altering its advertising".
Florist advocacy groups continue to take umbrage at ProFlowers' marketing which disparages the role of the local florist, particularly since ProFlowers itself uses local florists to fulfill its same-day, late next-day and Sunday delivery orders.
In September 2009 a class action lawsuit was filed against Provide-Commerce, the owner of ProFlowers and Encore Marketing the owner of Easy Saver, regarding the practices detailed in the Easy Saver offer detailed below.
Provide Commerce brands
- ProFlowers – flowers
- Cherry Moon Farms – gourmet fruit and gift baskets
- Shari's Berries - covered strawberries and other gourmet food gifts
- RedEnvelope - upscale gifts for all occasions
- Florist Express - same day flower and gift delivery throughout the United States.
- Personal Creations - gifts