RetailMeNot In Spat With Texas Neighbor Mary Kay

Online coupon aggregator RetailMeNot Inc SALE is having a spat with its Texas neighbor Mary Kay.

Austin-based RetailMeNot says Kay is "attacking free speech" and the rights of Americans to freely exchange publicly available information over the Internet.

RetailMeNot closed Friday at $20.84, down $0.06 cents. The shares are up 42 percent so far this year.

Kay, based in Addison, Texas, filed suit in March against RetailMeNot in U.S. District Court in Dallas, seeking an injunction barring RetailMeNot from using the phrase "Mary Kay."

Mary Kay charged RetailMeNot with trademark infringement, unfair competition, false advertisement, trademark dilution and unfair competition, according to the Dallas Morning News.

Mary Kay had estimated 2011 sales of $2.6 billion and was ranked as the world's sixth-largest direct selling organization by DirectSellingNews.

RetailMeNot saw its revenue slide 30 percent to $60.4 million for the year ended March 31, when profits sank 70 percent to about $4.1 million.

RetailMeNot said it doesn't receive revenue from mentioning Mary Kay and obtains "only nominal traffic involving Mary Kay."

RetailMeNot said the case "could have a negative impact on online content and service providers."

The case "should alarm consumers because it would deprive them of access to information about digital offers for their favorite retailers and brands," RetailMeNot said.