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...deal on the Medela. But she says she noticed something odd: the pump was listed at $300 everywhere she looked. For five months, she held out for a discount. Nothing. Finally, a week before going into labor, Trzupek gave in and shelled out $300 for the pump at Babies "R" Us (BRU), the retail outlet that parent company Toys "R" Us started more than a decade ago. Result: satiated baby, smaller wallet. (See seven new iPhone apps for moms...
...that breast pump part of a widespread price-fixing conspiracy that protected the profits of Babies "R" Us, the country's dominant big-box baby retailer? According to a federal judge, it appears that could be the case. On July 15, the U.S. District Court in Philadelphia granted class-action status to a complaint that Babies "R" Us coerced manufacturers of high-end strollers, car seats, high chairs, strap carriers and breast pumps into preventing Internet retailers from discounting their products...
...Discounts - or Else! The dirty deal, according to the suit, was simple. From 2001 to 2006, Babies "R" Us told companies like Medela that they had to enforce resale-price maintenance - i.e., tell the Web retailers, who can more easily discount products since they avoid brick-and-mortar costs, to sell your products at X, or you'll cut off the supply. If they resisted, Babies "R" Us threatened to cut off the manufacturers, according to the suit, and refuse to sell their products in Babies "R" Us stores. Since Babies "R" Us sold 30% to 50% of these companies...
...want to let Babies 'R' Us and other retailers know that consumers aren't going to put up with unfair trade restraints," says Trzupek, who joined the plaintiff class in 2006, when the suit was originally filed. The plaintiffs are pursuing an unspecified amount in damages; attorney Beth Fegan says the price agreements affected more than $500 million worth of baby products. (See the top 10 iPhone apps for dads...
...Breast-Pump Bullies? While Judge Anita Brody's July 15 opinion wasn't a final ruling on the case, Babies "R" Us is portrayed as a tough negotiator intent on protecting its top marketplace position. The other companies named in the suit - Medela; Maclaren; BabyBjörn; Regal Lager, the agent supplying BabyBjörn's products to the U.S. market; Peg Perego, the Italy-based maker of strollers, car seats and high chairs; and Britax, which sells car seats and strollers - come across as weak accomplices in the scheme, which Brody distinctly labels a "conspiracy." For example, Brody writes...