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Legal Battle between Toys R Us and Amazon

1. Toys R’ Us vs Amazon. com This case was filled in May of 2004 because there was a 10 year agreement that amazon. com Inc. back in August of 2000 which according to Toys R’ Us was violated.

The New Jersey Judge found that “Amazon had a duty to maintain its data in a format that would permit it to provide historical sales data for the sales of all products that allegedly should be classified as exclusive products, and Amazon did not maintain its data in a manner that would permit it to provide that information to Toys therefore, Toys was not provided with the data necessary for it to prove its claim if its legal contention is determined to be correct. ” (Samson, 2006) Which means that the judge found its ruling to be fare because amazon. om did not have the necessary reports that were required to be given yearly to Toys r us as part of the agreement so after 2 years of battling on March 1, 2006 the Judge ruled against Amazon. com and gave Toys R Us the win and settled for 51 million. 2. One advantage would be vastly increasing product base and potential without having to recreate the e-commerce code that Amazon has developed. Amazon could also see a potential increase in crossover sales from consumers who go to Amazon to buy toys and discover other products.

One disadvantage Include that Amazon would be restricted from entering into potentially more lucrative partnerships with other toy dealers. As well as the financial success and reputation of Amazon would be tied to another company which they have no control over. (Schneider, 2009) 3. A recommendation that I would give would have to be that Amazon could offer to only allow zShops that sell toys that are not from Toys R Us. Because if this was the case then that would allow Amazon to honor the agreement that they have with Toys R Us.

But Amazon would continue to realize profits from specialty toy retailers. Toys R Us would benefit from this because zShops would not be al to undersell on identical products. Consumers who go to Amazon to go search for a specialty toy may end up ordering a toy from Toys R Us instead. (Schneider, 2009) 4. Well there can be a possible reason that following the first wave of electronic commerce consumers may have been more likely to trust a relatively more established e-commerce company such as Amazon for making online orders.

It is mostly due to Amazon status as a popular e-commerce portal which may have provided Circuit City access to a larger volume of online consumers. Furthermore, as consumers have become more comfortable with e-commerce the Circuit City brand has become more established with the benefits which may have been minimized. (Schneider, 2009) References Schneider, G. P. (2009). Electronic Commerce. Boston: Course Technology. Toys R. Us. Com. LLC vs. Amazon. com, C-96-04 (Superior Court of New Jersey March 1, 2006).


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