In mid-June, the U.S. District Court in Charlotte, N.C., upheld an injunction against Michigan-based Wholesale Tool Co. preventing them from advertising or selling tools suspected to be counterfeits of American Tool Co. Quick-Grip and Vice-Grip products. The tools were advertised in Wholesale Tool’s most recent catalog, and were sold in Wholesale Tool outlets located in Michigan, North Carolina, Indiana, Massachusetts, Oklahoma, Florida and Texas.
Robin Clawson, spokesperson for American Tool, claims that a photo of the American Tool products with the labels covered was used in Wholesale Tool’s catalog to advertise the products. In compliance with the injunction, Wholesale Tool must reissue catalogs with the photos in question removed, and must distribute some corrective advertising.
The injunction also requires that Wholesale Tool send out a mailer to all customers who have purchased the tools in question. If customers have purchased a suspicious tool, they may be mailed back to Wholesale Tool Co. for a replacement. According to Clawson, the Wholesale Tool clamp products have red pads, instead of American Tool’s yellow pads, and they may also be labeled "Muganjia."
"[Wholesale Tool] has been very cooperative," says Clawson. "We wish they would not have done what they did, but once we started talking about it we were able to sit down at the bargaining table and correct the situation. It’s not our intention to cause unnecessary grief; it’s to remedy the problem." Clawson says that American Tool hopes to settle out of court with Wholesale Tool. Wholesale Tool Co. declined to comment.
Add new comment
Related Stories
NARI Renames Awards Program
The awards program has a new name, but continues its tradition of recognizing the best in residential remodeling
Registration Open for Women in Residential+Commercial Construction Conference 2024
Join 300+ women in construction for three days of impactful idea-sharing and networking in Phoenix
Power Home Remodeling Expands Financing Offshoot with $400M from Goldman Sachs
Industry-leading home improvement company Power plans to grow its fintech offshoot fivefold with new investment
Great Day Improvements Acquires LeafGuard and Englert
Leading home improvement company Great Day Improvements purchases two major brands from private equity firm Audax
Metros with the Highest and Lowest Remodel ROI
First-time homebuyers can find fixer-upper listings priced between 5 to 10% lower than move-in ready homes. The high return on investment of these projects shows that remodeling remains a strong option to navigate the current housing market
Latest Private Equity Activity Signals Continued Strength in Home Improvement
A hot month for private equity means the industry remains opportunity-rich
Pro Remodeler Wins Two Prestigious Jesse H. Neal Awards
The editorial team was honored with one of B2B journalism's most prestigious awards in the categories of Best Subject-Related Package and Best Range of Work by a Single Author
Business Coach Cited in Attorney General Lawsuit Against Contractor
A New England contractor faces a civil suit alleging his company’s growth was tied to a business coach with a model that “encourages fraud"
Harvard Says Remodeling Spending Downturn to Slow
Could the drop in remodeling spending from post-COVID levels regulate soon?
Power Home Remodeling Now Offers Subsidized Childcare
The home improvement giant's move seeks to address a greater industry issue