Ganz Sued Over Webkinz Sales Terms
Playthings Staff -- Kids Today, 7/17/2008 12:10:00 PM
Nuts For Candy, a California retailer, filed a class-action lawsuit against vendor Ganz USA and its Canadian parent firm, alleging that the conditions the company sets for stocking its popular Webkinz plush line violate U.S. antitrust laws.
The Burlingame, CA sole proprietorship's suit argues that Ganz’s policy of requiring retailers to order $1,000 worth of its non-Webkinz “core” line in order to apply to become a Webkinz plush seller, with no guarantee of becoming an authorized Webkinz retailer — violates the Sherman Antitrust Act and the Clayton Antitrust Act.
The suit claims Ganz’s policy causes “monetary injury” to retailers, and argues that the company “succeeded in making it more difficult for Plaintiff and Class members to sell products that compete with Webkinz and/or the [core] Ganz products by forcing Plaintiff to stock limited retail shelf space with unwanted products, reducing Plaintiff’s ability to sell competing products.”
The suit’s class is open to all persons or entities in the U.S. who established an account with Ganz from July 1, 2006, onwards.
Nuts For Candy is seeking a jury trial under the jurisdiction of the U.S. District Court for the Northern District of California. It is requesting damages for all class members “threefold their actual antitrust damages sustained,” along with “reasonable” attorneys’ fees and costs, and pre- and post-judgment interest. The retailer is being represented by Cotchett, Pitre & McCarthy, Burlingame, CA.
A Ganz spokesperson told Playthings, sister publication to Kids Today, that the company had no comment on the suit.
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