When Incumbents Can’t Compete, They Seek to Regulate and Litigate Startups

(p. B5) Figs Inc. has fashioned itself as the Warby Parker of medical uniforms, using advertising splashed on subways and billboards to sell its form-fitting scrubs directly to nurses and doctors.

. . .

Careismatic Brands, a leader in medical apparel with brands of scrubs like Cherokee and Dickies, has pursued litigation against Figs since 2019, saying the smaller company has misled health-care workers with boasts about how its products help keep them safe.

. . .

Startups increasingly have to prepare for legal challenges from the industry they are trying to disrupt, said Arun Sundararajan, a business professor at New York University. Starting with the rise of Uber and Airbnb, “The incumbents chose regulation and litigation to try to push them back,” he said, a strategy that has been replicated.

For the full story, see:

Sara Randazzo. “Figs, a Maker of Scrubs, Fights Lawsuit Over Ads, Marketing.” The Wall Street Journal (Thursday, February 4, 2021): B5.

(Note: ellipses added.)

(Note: the online version of the story has the date February 3, 2021, and has the title “Figs Fights Lawsuit Over Scrubs Ads.”)

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