Health & Fitness
SHOPRITE ACCUSED OF GROCERY MONOPOLY
A New Jersey based developer seeking to construct a Wegman’s Food Market hit the owners of ShopRite with a Federal lawsuit claiming that ShopRite (also known as Village Supermarkets and Wakefern Food Corp) has waged an anti-competitive war against the construction of competing supermarkets.
The complaint (Hanover 3201 Realty, LLC v. Village Supermarkets, Inc. et al) states that, “The market for full service supermarkets is not different than any other and it is essential that competitors be allowed to enter the marketplace free from the predatory practices of the would-be monopolists.”
Furthermore, the plaintiff claimed that ShopRite waged a war against the competing food store by using state and federal regulatory agencies (Fish and Wildlife Services) as it’s weapons, filling baseless complaints, challenges and appeals intended to prolong or prevent the issuance of permits the developer needs to build the store. (http://www.law360.com/articles/514841)
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The suit, filed in Federal Court on February 27, 2014, includes two counts against Village Supermarkets, the owner of 26 ShopRite Supermarket locations across New Jersey. The plaintiff claims that ShopRite utilized sham litigation to thwart the construction of a competing supermarket in violation of the Sherman Anti-Trust Act , including two counts of tortious interference and a civil conspiracy count according to the article “ShopRite Owners Accused of Seeking NJ Grocery Monopoly - Law360”.
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As of this writing, there is no evidence of a formal statement or response by Village Supermarkets, ShopRite, or Wakefern Foods to this federal suit.
For the people of NJ, this suit is of some importance. The availability of competing providers of basic food commodities is an advantage to consumers long protected by state and federal anti-trust laws. At times of crisis and natural disasters, as we experienced during Hurricane Sandy, the more sources of food available to desperate families the better we are all able to weather the storm.
READER SURVEY: DO YOU AGREE WITH THIS FEDERAL LAWSUIT ALLEGING THAT SHOPRITE IS THWARTING COMPETITION FROM OTHER FOOD STORES IN NEW JERSEY? PLEASE COMMENT BELOW
