By George Anderson
New Jersey State Superior Court Judge Margaret McVeigh has had enough of the squabbling going on between Amazon.com and Toys "R" Us.
In a hearing yesterday, the judge ordered the companies to get their technical staffs together to make sure holes in programming do not allow others to sell goods on Amazon prohibited by the $50 million a year marketing deal between the parties.
Michael Dockterman, attorney for Toys "R" Us, said the retailer took this action because it is concerned that when Amazon launches its graphical user interface technology in the near future, hundreds of other retailers will be able selling the same items.
"We are supposed to get first crack at any toy that anyone else wants to put up on the site," he told the Star-Ledger of Newark, NJ. "That is what we pay $50 million a year for."
Amazon.com attorney, David Goodnight, said Toys "R" Us expecting a 100 percent foolproof system for keeping products off the site covered by the agreement was akin to asking the toy retailer to guarantee it would eliminate all shoplifting.
Moderator's Comment: Do you have any insights into the dispute between Amazon and Toys R Us? How will the difficulties encountered between Amazon and TRU impact how other future "exclusive marketing" deals are done?
Judge McVeigh ordered Amazon to pay the court costs for yesterday's hearing and has said she will fine it $1,000 for each exclusive Toys "R" Us product being sold by another vendor if it is not removed within 24 hours of posting. - George Anderson - Moderator