Toys R Us files lawsuit against Amazon over exclusivity

NEW YORK - Toysrus.com has filed a lawsuit against Amazon.com claiming that it has breached an exclusivity agreement on Amazon's Toy & Game and Baby Products categories.

, a division of Toys R Us, is bringing the case because it has an agreement with to be its exclusive supplier until 2010. It alleges that Amazon has allowed other vendors to sell in these categories, despite the fact it had paid for exclusivity.

The company added that when it signed the agreement in August 2000, it stopped selling some products through its own site to join the Amazon.com platform.

Toysrus.com said that it had attempted to resolve the matter amicably through third-party mediation, and that it intended to continue paying Amazon.com.

David Schwartz, senior vice-president and general counsel for Toys R Us, said: "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."

Amazon started out primarily as a book retailer, but its success has seen it branch out to sell thousands of different lines, including signet rings, bikinis, saucepans, sheds and insect repellent.

Toysrus.com's vice-president and general manager Greg Ahearn said: "We have supported Amazon.com's entrance into new retail categories and services in order to grow its business, and we are dedicated to working through a resolution together."

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