A judge has fined Amazon.com $18,000 for violating her order in a lawsuit brought by Toys R Us charging the Internet merchant with flouting...
PATERSON, N.J. — A judge has fined Amazon.com $18,000 for violating her order in a lawsuit brought by Toys R Us charging the Internet merchant with flouting its exclusivity agreement with the nation’s second-biggest toy retailer.
Wayne, N.J.-based Toys R Us sought the sanction, claiming that after its lawsuit was filed last year, Amazon listed 46 products on its Web site that only Toys R Us was allowed to sell. The motion was opposed by Seattle-based Amazon.
Toys R Us had sued on May 21, claiming Amazon violated a 2000 partnership agreement in which Amazon, in exchange for $200 million, would not let others sell certain products being offered by Toys R Us on Amazon.com.
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Amazon countersued on June 25, seeking to dissolve their partnership, citing “chronic failure” by Toys R Us to keep items in stock and to otherwise adhere to their contract.
Superior Court Judge Margaret McVeigh has scheduled the trial to begin March 16 if mediation efforts fail. She ruled on the fine Monday.
Amazon spokeswoman Patty Smith declined to comment yesterday. Representatives from Toys R Us, the nation’s No. 2 toy seller after Wal-Mart, did not immediately return a call seeking comment.