SPY and the Vanguard version together represent half a trillion dollars of wealth under management. And that's just the top two. So yes, you can dump that much in index funds.
For one, Costco is a wholesale club. It is specifically designed to sell resealable goods. E.g. buy by the box a good that is individually wrapped for resale. It is the design of Costco and the products they sell are regulatory compliant.
Not so of Pirate Joe's. The Pirate sells goods in Canada that only comply with U.S. market rules (food safety, nutritional markings, etc.).
That's not really the merit of this case, which is more about trademark and branding, but reselling Trader Joe's goods (not meant for resell) in Canada (different market) is hardly comparable to reselling Costco goods (meant for resell) in the U.S. (same market).