March 4, 2005

Amazon loses first round against Toys R Us . . .

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The site formerly known as “the world’s biggest bookseller” has been fined by a New Jersey Superior Court judge in a case in which it is being sued for selling toys it wasn’t supposed to. According to an Associated Press wire story, the New Jersey-based Toys R Us is suing Amaozn.com for violating the terms of an agreement struck in 2000 between the two companies, “in which Amazon, in exchange for $200 million, would not let others sell certain products being offered by Toys R Us on Amazon.com.” But Toys R Us says after it filed the suit, “Amazon listed 46 products on its Web site that only Toys R Us was allowed to sell.” The judge agreed and has issued an ย,000 fine against Amazon. Amazon, meanwhile, has countersued Toys R Us, citing “chronic failure” by the toy company to ” to keep items in stock and to otherwise adhere to their contract.” Amazon wants $750 million in compensation. The judge has set a trial date of March 16.

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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