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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrader Joe wants their best customer to go away - posts his pics in stores
Vancouver, British Columbia -- Michael Hallatt has spent more than $350,000 at Trader Joe's in less than two years. But the popular grocery chain doesn't ever want to see him again.
"I'm their best customer," he said with a mix of pride and indignation.
Every week, the former Bay Area resident drives his panel van across the border to buy a few thousand dollars worth of merchandise at Trader Joe's stores in the States. He then turns around and resells the goods at his own shop in Canada for a profit.
Now, despite the obvious affection Hallatt and his customers have for the eclectic grocer, he finds himself the subject of a lawsuit filed in May by the California company, which has no presence in Canada. The suit seeks to shut down the store he owns in Vancouver that is entirely devoted to reselling Trader Joe's products.
His response: removing the "P" from his front window, turning Pirate Joe's into Irate Joe's. And his cross-border shopping trips continue, even though more and more Trader Joe's markets are posting his picture.
"Almost all the stores in the Pacific Northwest have asked me to leave," said Hallatt, 53, a British Columbia native who lived in the Bay Area from 1996 to 2004, lured by the dot-com boom. "This is a little bit David versus Goliath and a little bit Occupy Grocery."
The lawsuit, filed in federal court in Washington state, alleges federal trademark infringement; unfair competition, false endorsement and false designation of origin; false advertising; federal trademark dilution; injury to business and reputation; and deceptive business practices. Earlier this month, Hallatt's Seattle lawyers filed a motion to dismiss.
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Weekly shopping trips
Hallatt usually spends $4,000 to $5,000 in cash during his weekly shopping trips. He used to go mainly to Bellingham, Wash., where more than 40 percent of credit card transactions are with non-U.S. residents, according to the suit. But being in Trader Joe's crosshairs has driven him south, into Seattle, Portland and even California. He said San Francisco is his dream territory.
"You've just got to have unlimited temerity," Hallatt said.
http://www.sfgate.com/news/article/Trader-Joe-s-drags-a-pirate-to-court-4736782.php
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bunnies
(15,859 posts)Leave the guy alone. He paid for the stuff, who cares what he does with it?
Egalitarian Thug
(12,448 posts)developed over decades and from which they do not vary for very good reasons. When he fucks up, it will TJ's that will be blamed, not this asshole. He is simply profiting from their work, not to mention breaking dozens of laws, both Canadian and U.S.
And the very idea of claiming TJ's is a Goliath is simply absurd. Any of the major grocery store chains throws more stuff away in a week than TJ's sells in a year
bunnies
(15,859 posts)But they sure are acting like a bully. If this guy is breaking laws, let LE deal with it. I explained just below why I dont see how TJs would be blamed in the event this guy fucks up. Its not their fault that someone in another country is selling their products.
Egalitarian Thug
(12,448 posts)I'm probably one of the pinkest members on DU, and would have no problem with this guy if he worked with TJ's to bring their products to Canada. But in the end, this guy is seeking to profit from their work, their brands, which are produced by their suppliers, at an enormous markup with no return to the people that make it possible. He ripped off their name and the appearance of their brand, but carries no responsibility. He is just taking.
Why TJ's? Why not Walgreen's, or Kroger, etc.? Because it is TJ's that makes the quality products that people want.
I just think this a matter of not appreciating the 60+ years of work that TJ's has put into creating itself.
MurrayDelph
(5,752 posts)If I sold someone a Pastrami sandwich, I knew it had been properly cooked and maintained until the time it leaves my shop.
If someone were re-selling my merchandise, I no longer have the control over the quality, but would still get the blame if it wasn't properly maintained.
If Pirate Joe's sells Trader Joe's hummus (which is labelled) that has not been properly refrigerated and it has gone bad, it's TJs rep that's on the line.
bunnies
(15,859 posts)but I disagree.
Lets use a restaurant as the example. If I get bad food at a restaurant (by bad I mean rancid, etc) and I get ill... am I going to ask about your suppliers? No. Im going to blame you.
Same with a grocery store, If I buy a bad container of sour cream or even hummus (as in your example), my blame doesnt go to Hood or Cedars, it goes to the grocery store. Its the grocers job to ensure the safety of the food they sell. And I think its pretty clear that by buying items at a place called "Pirate Joes" the patrons are accepting that risk.
As for their reputation, I dont think going after this one guy in Canada is doing much for it. Time will tell though, I guess.
unblock
(56,198 posts)pretty funny, "unlimited temerity". i'd call it a recklessly unsound, opportunistic business model.
in a david-vs-goliath sense, i'm not sure he *ought* to lose in court; but i am rather confident he *will*. he's clearly trying to profit on the backs of investments trader joe's has made in branding and advertising.
BlueJazz
(25,348 posts)Liberal_in_LA
(44,397 posts)
BlueJazz
(25,348 posts)Just a quirk of mine.
Aristus
(72,187 posts)about unfair business practices when they are the beneficiaries. Seems the heighth of whining childishness to complain when it goes the other way...
KarKar
(80 posts)They buy bulk rate stuff, cut it up and resell it. They are providing a service to people who can't afford the gas to get it themselves and they always sell out.
Blue_In_AK
(46,436 posts)we noticed Costco brand (Kirkland) stuff in many of the small grocery stores in places like Tok and Haines.
KarKar
(80 posts)of Costco stuff and shipping it up. Probably not a bad investment. Not too far to Washington state from south-east Alaska.
Blue_In_AK
(46,436 posts)Probably easier to bring a container up from Seattle than transport from the Anchorage or Juneau store.
Safetykitten
(5,162 posts)
Bolo Boffin
(23,872 posts)They have plenty of business customers. I don't know if they have a regular membership and if that would be considering abusing it, but I doubt it. The business memberships are about giving services tailored to those customers, IIRC.
Tomica
(13 posts)I think Hallatt's an idiot and should be made extremely poor for illegally reselling.
There is a reason why TJ does not do franchises.
It took YEARS for TJ to agree to build in Colorado after we modified the blue laws to fit TJ's needs (and to attract other businesses)
They are finally opening this fall.
Elwood P Dowd
(11,453 posts)He owned a convenience store out in a fringe/rural area that sold mostly gasoline, beer, tobacco, and snacks that he bought from regular distributors. For items such as toilet paper, paper towels, band aids, rubbing alcohol, windex, washing powder, paper plates, plastic spoons/forks, charcoal and fluid, tooth paste, and other similar goods he bought from Sam's Club. The store was 6-7 miles from any Wal Mart or supermarket, plus it must have been 60 miles to the closest Sam's Club. He marked them up about 30% and sold them to locals who needed one or two items quick and didn't want to waste time or two dollar's worth of gas just to save 75 cents.
Suich
(10,642 posts)which is where a bunch of family members live. My nephew has been to the TJ's here in Seattle and he said he never shops at PJ's because it's too expensive!
Retrograde
(11,419 posts)If he called it Pirate Mike's TJ's wouldn't have much of a case. But since they've apparantly registered their trademark in Canada, they need to defend it. (OK, IANAL and I don't know how Canadian trademark laws actually work, but this is my best guess).
So, what does Canadian customs have to say about his large-scale imports?
Sen. Walter Sobchak
(8,692 posts)Either to protect their brand or because they are contractually obligated to through agreements with international distributors or the manufacture.