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Stephen Martel thought he had come up with a unique way to promote his Cochrane, Ont. auto parts store. Instead, Martel was served with a cease and desist letter from Canadian Tire's lawyers.
At issue: recently, Martel decided to accept Canadian Tire currency as a form of payment at his Martel Auto Parts store. He advertised his program by putting a sign in the window of his shop stating he was happy to accept Canadian Tire money for purchases. Over the course of the program, he took in approximately $200 worth of Canadian Tire cash.
Canadian Tire was not amused. The Toronto-based company warned Martel that such a marketing initiative was akin to trademark infringement. As well, Canadian Tire alleged that Martel's actions were hurting the local Cochrane Canadian Tire store.
While Martel acquiesced to Canadian Tire's wishes - he says he doesn't have the resources for a courtroom battle - he believes he's being unfairly targeted by the retail giant.
For example, Martel notes when he Googled the phrase, "We accept Canadian Tire money," he discovered "hundreds" of retailers across Canada - including an Oakville, Ont. jewelry shop and a video rental store in Halifax - embracing the same marketing ploy he once promoted.
Says Martel: "Why is Canadian Tire just going after me and not all these other places?"
Martel has his own theory: he says he had a business dispute with the Cochrane Canadian Tire store owner, Kevin P. Smith. As a result, Smith is still upset with him.
As well, Martel claims he saw Smith take a picture of his sign, presumably to send it along to Canadian Tire's head office. Shortly thereafter, Martel says he was served with legal papers.
For his part, Smith says he has no personal grudge against Martel whatsoever. However, he notes that Martel is a direct competitor given that both Martel Auto Parts and Canadian Tire sell automotive replacement parts. And Smith says Canadian Tire money is meant to drive customer traffic to his store, not Martel's.
"I need to maintain my customer base," Smith says.
Even so, a question remains: why did Canadian Tire HQ go to the extent of sending its lawyers after Martel while hundreds of other retailers continue to openly accept Canadian Tire dough?
Canadian Tire spokesman Lisa Gibson says the company has indeed issued several cease and desist letters to other retailers accepting Canadian Tire money.
"He [Martel] is not the first; he's not the only one; and he won't be the last," she says. "This [accepting Canadian Tire money] is a trademark violation and the reality is he's a competitor."
