Ganz sued over Webkinz sales terms
By Staff -- Playthings, 7/10/2008 2:07:00 PM
SAN FRANCISCO—A California retailer has filed a class-action lawsuit against Ganz USA and its Canadian parent firm alleging that the conditions the company sets for stocking Webkinz plush violate U.S. antitrust laws.
The suit, filed on behalf of Nuts For Candy, a sole proprietorship in Burlingame, Calif., argues that Ganz’s policy of requiring retailers to order $1,000 worth of its non-Webkinz “core” line in order to then apply to become a Webkinz plush seller—and with no guarantee of becoming an authorized Webkinz retailer despite having fulfilled the necessary minimum order, according to the suit—violates the Sherman Antitrust Act and the Clayton Antitrust Act.
The suit claims that Ganz’s policy causes “monetary injury” to retailers forced to order non-Webkinz products before being qualified to order Webkinz toys, and argues that through such a policy Ganz “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, Calif.
A Ganz spokesperson told Playthings the company had no comment on the suit.
