Judge Fines Amazon.com $18,000 in Toys R Us Case

A judge has fined Amazon.com Inc. $18,000 for violating her order in a lawsuit in which Toys R Us Inc. charges the Internet merchant with flouting its exclusivity agreement. The nation's second biggest toy retailer sought a sanction against Amazon because it claims that, after the suit was filed, Amazon listed 46 products on its Web site that only Toys R Us was allowed to sell.

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A judge has fined Amazon.com Inc. $18,000 for violating her order in a lawsuit brought by Toys R Us Inc. 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. 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. Both seek monetary damages and a judgment that the other is violating the agreement. Amazon is suggesting it should be awarded at least $750 million as compensation for lost shipping revenue and other costs. Superior Court Judge Margaret M. 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 Thursday. Representatives from Toys R Us, the nation’s No. 2 toy seller after Wal-Mart Stores Inc., did not immediately return a call seeking comment. Toys R Us shares rose a penny to close at $23 in Thursday trading on the New York Stock Exchange, near the high end of their 52-week range of $12.90 to $23.14. Amazon.com shares rose 15 cents to close at $35.65 on the Nasdaq Stock Market, near the low end of their 52-week range of $33 to $54.70. Copyright 2005 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

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