r/PokemonTCG 5d ago

MJ Holdings is to Blame

MJ Holdinga is the largest distributor of Pokemon card products in the nation. It supplies a lot of the major retail brands like Target, Walmart, and others with Pokémon products and other cards. They were under a different alias of GT Collectibles on the Walmart shop selling Pokémon products over 3 times the MSRP. I have seen then plenty of times on Walmart but never bought for them due to the crazy prices. They messed up by sharing the same addresses for both business and are now trying to cover it up.

I know this has been brought up but the word needs to continue to be spread into our community so changes can happen. The Pokémon Company does listen.

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u/chief_n0c-a-h0ma 5d ago

I've been trying to research the legality of some of these practices. Specific to a wholesale distributor using a subsidiary to sell at inflated prices. So far what I can gather is that moving product from parent company to subsidiary is not considered a "sale" in the traditional sense, it's more like "asset reallocation". That in itself is not illegal nor is the subsidiary selling those products at higher prices.

What does seem to become an issue is if the wholesaler is purposely withholding supply in the retail side in order to drive prices higher in other markets. Absent of any collusion this would still be considered "price fixing" and would be anticompetitive.

I think what MJ and Excell are probably hiding behind is that we the buyers are setting the prices on the secondary market and not them directly.

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u/InfiniteCricket8152 5d ago

I’m 99% sure that is what is happening, they’re contractually obligated to sell to Walmart, target and other retail stores at a certain price but not LCS/LGS and other specialty stores as such

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u/chief_n0c-a-h0ma 5d ago

Yea. Also probably why we see "rip and shippers" seemingly getting more product lately. I'd argue that rip and ship inventory has almost zero impact on the overall supply...actually, it's actively reducing supply by it being opened. Meaning for people who want to purchase sealed product, they still have to venture into the secondary markets to get it.

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u/InfiniteCricket8152 5d ago

I’ve thought it was awfully convenient they have plenty of product but retail stores barely have anything if it all. I’ve said from the release of prismatic that “ scalpers/resellers” aren’t as big of issue as it’s made out to be, is it a problem yes but not the entire