May 24, 2004, 12:00 AM sues Amazon over sales by competing retailers on says its contract grants exclusivity on Amazon for products it sells in the toy, game, and baby product categories. But the company counts more than 4,000 items in those categories on offer at from competing retailers.

Toys “R” Us online subsidiary has filed suit against, alleging that Amazon has violated a contract granting exclusivity in the toys, games and baby products category on says the contract, which dates back to when it began selling on the Amazon platform in August 2000, gives it exclusivity on the Amazon platform through 2010. says it has attempted to resolve the matter outside of the courts, including third-party mediation. The company says it does not expect the legal filing to disrupt products and services it now offers on Amazon.

As of last week, according to, more than 4,000 products in categories for which the contract gives exclusivity were being offered for sale by competing retailers on the platform. In one example, a search on Amazon on the game Pictionary Jr. offered shoppers a link to rather than taking them to, which sells the item.

“We expect to respect its contract with us and to support our position especially since we pay a very high fee to maintain this exclusivity,” says David J. Schwartz, senior vice president and general counsel for Toys “R” Us Inc. Inc. “We would be happy to compete with other vendors in thee categories, but we are not willing to pay for exclusivity that we are not receiving.”

In a statment, called the allegations of "without merit," and said it would not comment further on the pending litigation. However, "We are relentlessly focused on increasing selection for customers consistent with our contractual commitments. Among other things, we believe we can have multiple sellers in the toy category, increase selection, and offer products that doesn`t have," Amazon said in the statement. will continue to make payments to Amazon per the terms of the contract while the matter is resolved, says. The suit was filed in Superior Court of New Jersey, Chancery Division, Passaic County.


Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!




Relevant Commentary


Seth Barnes / E-Commerce

Commissions are for closers

A executive responds to an Internet Retailer article describing a web merchant’s decision to ...


Jason Squardo / Mobile Commerce

Five tips for achieving high mobile search rankings

Searches on mobile devices will soon exceed those on computers, Google says. Retailers that keep ...