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Babies-R-Us sued by rivals for price-fixing
Filed under: Places To Go
Two of Babies "R" Us smaller rivals have filed a lawsuit against
Toys "R" Us (the baby store's parent company), alleging that the the nation's largest specialty retailer of
baby products has been coercing at least six manufacturers into demanding minimum pricing levels for their merchandise.
The lawsuit alleged that this practice is designed to prevent other retailers from selling high-end cribs, strollers and
baby carriers more cheaply than Babies "R" Us.
Babyage.com and Baby Club claim that in the past they were able to sell such products at a "significant discount" to Babies "R" Us, but as early as 1999, the two companies began getting pressure from manufacturers to not price items below a certain level. If the retailers did not comply, the manufacturers' threatened to withhold their products, the lawsuit says. Babies "R" Us was able to accomplish this by threatening to not sell certain manufacturers' goods if they didn't insist on the minimum pricing. The manufacturers -- Britax, Kids Line, Medela, Babybjorn, Peg Perego and Maclaren USA -- were not named as defendants in the cases.
In a prepared statement, Toys "R" Us said the claims are without merit.
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