Bribery, impersonation, infringement: Welcome to the cutthroat world of magnet advertising

Lawsuit, counterclaim allege companies use unfair practices against each other

A court battle has opened in South Dakota between two companies that specialize in manufacturing magnet advertisements, exposing the cutthroat world of advertising by magnet.

The opening salvo was fired in June when Platte-based J&J Magnet filed suit against City Magnet, a company based in Sunrise Beach, Missouri. City Magnet fired back last week with a counterclaim against J&J Magnet. The lawsuit is playing out in the U.S. District Court for the District of South Dakota.

The companies operate by selling advertising spaces on magnets. For example, a sales representative might visit a town and sell spots to individual businesses. Once all the spaces are sold, the magnets are then mailed to residents living in the market. The magnets offer long-term exposure to the companies that buy spots on them, and they are typically not replaced for a couple of years.

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