Kaplan files suit against Princeton Review

By Jennifer Yachnin
Daily Staff Reporter

Kaplan Educational Centers announced Wednesday that they are filing a lawsuit against The Princeton Review, alleging false advertising.

The Kaplan lawsuit follows one filed by the Graduate Management Admission Council against the Princeton Review over copyright infringement.

"They're selling some 60,000 products that are not what they report to be," said Andy Rosen, Kaplan Education Centers' chief operating officer.

The GMAC lawsuit pending against Princeton Review states that the phrase "GMAT CAT" can only be used by GMAC, said GMAC President Dave Wilson.

"We own GMAT tests and test items," Wilson said. "They alleged they had two authentic GMAT tests. We are protecting our trademark. We're not looking for publicity."

The Kaplan lawsuit alleges that Princeton Review used false promotional claims to sell books and software for exams.

Princeton Review spokesperson Paul Cohen said the company accidentally advertised falsely, but considers the promotion as a "honest mistake".

Cohen said one Princeton Review book stated it included four Computer Aptitude Test exams, a mistake Princeton Review noticed a few weeks ago.

"We had four linear pencil and paper tests that create one CAT test, but we only had one CAT," Cohen said. "For anyone who calls (with complaints) we will give them a CD-ROM with the three tests or a full refund."

LSA senior Steve Ellis said the lawsuit will make him think twice about which books he will purchase.

"When (a Princeton Review book) says it has so many tests, I expect that many tests, not parts," said Ellis, who was looking through the reference books at Border's Books and Music on East Liberty Street.

Kaplan officials are upset that the false advertising may slant the market against them.

"From a competition standpoint, someone making a choice based on the promotion on the book will pick the Princeton book because of what it says it has," Rosen said. "(Princeton Review) has come under a flood of attacks because of advertisements that are basically misleading."

Rosen said Kaplan will seek a restraining order against Princeton Review that requires the company to label the mistakes on cited products, a request Kaplan made before filing the lawsuit.

Cohen said Princeton Review had turned down Kaplan's request because most of the products, which have been in stores for six weeks, are nearly sold out. The new, corrected products will arrive in stores in October.

"We considered (stickering) but we didn't deem it necessary," Cohen said. "It had already sold so well, and it wasn't based on the false information."

According to a Princeton Review press release, only one customer complained about the mistake, and received a full refund.

"The company views Kaplan as doing this as a marketing tool for them. We did not intend to mislead anyone," said Amy Conway, state director of Princeton Review graduate programs.

Conway, who is based in the Princeton Review center located on S. University Avenue, added that students with complaints or questions about the books are directed to the company's toll-free number.

Several local bookstores said they had received no complaints about the products mentioned in the lawsuit.

"If there is a lawsuit, they haven't said anything to us or had a recall on anything," said Marvin Davis, sales manager for Ulrich's Electronics. "We haven't had anyone return software with complaints related to that."

Assistant manager at Borders Books Jim Kirk said he had not heard of the lawsuit.

"We sell Princeton Review books for several tests," he said. "We haven't had any complaints that I am aware of."

09-19-97