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March 30th, 2011, 12:55 PM #1
Toys R Us settles lawsuits over web price pressure
- Join Date
- May 31st, 2006
- Houston TX
Toys ‘R’ Us settles lawsuits over web price pressure
Toys ‘R’ Us faced two connected lawsuits alleging antitrust violations. One was a class action suit brought by consumers who claimed they had to pay more to buy products like child car seats and baby strollers because Toys ‘R’ Us pressured the manufacturers of those products not to pay to web retailers that charged less than bricks-and-mortar stores. In the other case, e-retailers BabyAge.com Inc. and Baby Club of America sued Toys ‘R’ Us and several manufacturers saying they lost business because they were not able to sell products made by the manufacturers that succumbed to pressure from Toys ‘R’ Us, which is No. 37 in the Internet Retailer Top 500 Guide.
March 30th, 2011, 01:17 PM #2
-rematt"I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon
March 30th, 2011, 01:28 PM #3
Surprised they got caught up in something like this.
In a previous life and industry, manufacturers often had MAP pricing to keep everyone on a level playing field with regards to what prices were advertised for their products.
If a manufacturer didn't "want" a particular B&M dealer, or a particular online only dealer, to be able to sell their products they simply set their purchasing requirements at a point that it wasn't feasible. IE: High Minimum Orders, Must have stocking inventory/warehouse in order to do the occasional drop ship order, and/or low discounts or discounts based on volume purchases. Furthermore, manufacturers would offer quarterly or annual rebates based on a dealer's purchases. Plenty of ways to prevent someone from selling your products.
All in all, it looks like the settlement amounts could be considered "peanuts" and may have been agreed upon to just end the costs associated with defending any suits.
Unless I'm missing something here...Salty kisses, Sandy toes, and a Pirate's heart...