Amazon.com Countersues Toys ’R’ Us

Jun 30, 2004 12:51 AM  By

The Amazon.com-Toys ’R’ Us fulfillment marriage is on the rocks, with each company suing the other. Amazon.com is looking to dissolve its online fulfillment contract with Toys ’R’ Us, claiming that the country’s second largest toy retailer isn’t adhering to contractual obligations. Amazon is seeking $750 million as compensation for lost shipping revenue and other costs.

Amazon’s action came on June 25 in the form of a countersuit filed in New Jersey State Superior Court. Amazon was reacting to a May lawsuit from Toys ’R’ Us’s Toysrus.com online subsidiary, which charged that Amazon violated exclusivity terms by selling and allowing other retailers to sell toys. Toys ’R’ Us claims it paid $200 million over four years for the “privilege” of having toy competitors kept off the Amazon site. But in its countersuit, Amazon.com charged that the agreement allows for exceptions.