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Toys R us Online Unit Sues Amazon.com

malebolgia   on 24 May 2004 - 22:03 · 11 comments & 1536 views

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Toys R Us Inc., the No. 2 toy seller, said on Monday its online arm, Toysrus.com, filed a lawsuit charging that Amazon.com Inc. violated Toys R Us' exclusive rights to sell toys, games and baby products on the Amazon Web site. According to Toys R Us, its contract with the Web retailer states that Toysrus.com is the only authorized seller of toy and game and baby products on the Amazon.com platform through 2010. When the deal was signed in August 2000, Toysrus.com stopped selling products through its own site to move to Amazon.com.

"We expect Amazon.com to respect its contract with us and to support our position, especially, since we pay a very high fee to maintain this exclusivity," said David Schwartz, general counsel for Toys R Us, which is based in Wayne, New Jersey. "We would be happy to compete with other vendors in these categories, but we are not willing to pay for exclusivity that we are not receiving." Schwartz said that as of May 17 there were more than 4,000 products in exclusive categories being offered through competitive retailers on the Amazon.com platform, violating the agreement.

News source: Reuters


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Post a comment · Send to friend Comments · There are 11 additional comments
#1 area91 on 24 May 2004 - 22:20
Interesting.
(4 replies) #2 GwaRGuITaR on 24 May 2004 - 22:36
who's the number 1 toyseller then? i would have assumed toys r us?
#2.1 YaddaMe on 24 May 2004 - 22:44
Wal-Mart

Here's an interesting, but kinda off-topic, article about Wal-Mart & the toy business:
http://www.freep.com/money/business/toys17...17_20040217.htm

Last edited by 10547 on 24 May 2004 - 22:51
#2.2 GwaRGuITaR on 24 May 2004 - 22:53
what? really??

their toy selection isn't that great.

when i think to myself i need a toy for some kids birthday/christmas/whatever i instantly think toys 'r' us... defenitley not walmart!

very strange.
#2.3 YaddaMe on 24 May 2004 - 23:00
QUOTE
what? really??

their toy selection isn't that great.


Exactly what the article above touches on. What they lack in selection/quality, they make up for in customer quantity. However, as they continue to kill off toy-only retailers, all those other toy manaufacturers that aren't in Wal-Mart suddenly have no place to sell & hurts the industry. Obviously, in addition to toys, that goes for countless other areas that Wal-Mart deals in.

No matter which product is in question, Wal-Mart can't touch the specialty stores. Yet due to their dabbling in all those areas under 1 roof, they still get more customers/sales than the majority of those specialty stores.

I could go on & on about the negative effects of Wal-Mart to the consumer, other retailers, manufacturers, etc (from dealing with them first-hand), but this is supposed to be about Amazon/ToysRUs so I save it for another day.

Last edited by 10547 on 24 May 2004 - 23:09
#2.4 GwaRGuITaR on 24 May 2004 - 23:08
ah you posted the article after i replied...

great article! very strange indeed. had no idea any of this was going on.
#3 YaddaMe on 24 May 2004 - 22:43
It's going to be entirely based on the wording in the contract, and whether Amazon.com is not allowed to sell toys themselves, or whether 3rd party retailers that use Amazon.com to sell their products are prohibited from selling toys as well.

Whether it relates or not, Amazon.com hasn't always has the best ethics (ie. Alexa/Amazon privacy lawsuit, Amazon's ability to sell personal info under certain circumstances, etc).
#4 DsnBehind on 25 May 2004 - 04:11
Bad Amazon...
(2 replies) #5 alister on 25 May 2004 - 14:07
I hated it when Toys R Us went to Amazon, because Toys R Us may have a video/DVD on sale in their store but you cannot order it online because when Toys R Us went to Amazon the video/DVD sales are through Amazon. I hope that Toys R Us learns their lesson an splits their website from Amazon.

Alister
#5.1 YaddaMe on 25 May 2004 - 15:23
The worst was when CDNow went to Amazon. Their listing format was far superior to Amazon's.
#5.2 DJ Specs on 26 May 2004 - 03:53
HMV went to Amazon as well, and suck ass.

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