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December 2007 | Vol. VI - No. 12

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December 2007 | Vol. VI - No. 12

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Webkinz Get Sued!

Lawsuits and Lack of Trust Plague Online Plush

By Alison Marek
December 2007

Dec. 11, 2007 — From the “could it get any worse” department comes the news that toy-store owners are suing Ganz, Ganz may be returning the favor, Wal-Mart is buying Webkinz via a second-party distributor, and no one believes anyone anymore.

While specialty retailers have been threatening lawsuits for months, two have taken action. Via Station Enterprises, Inc., Hans and Patricia Masing, owners of online Brain Station and brick-and-mortar Tree Town Toys in Ann Arbor, Mich., are suing Ganz for $75,000 plus costs and legal fees. Tammy Bittinger of Shopping Therapy/Collector’s Club filed a small claims suit against “Ganz” on Sept. 5 for $1,500 in the District Court in Oklahoma County, Okla., as previously reported in TDmonthly Magazine.

Though Masing wasn’t able to comment directly on his case, documents filed at the District Court of the Eastern District of Michigan on Oct. 10 reveal that Ganz is charged with “[breaching] the parties’ contracts by, among other things, failing to deliver Webkinz merchandise within a reasonable time and canceling and/or refusing to deliver Webkinz merchandise unless Tree Town agreed to additional conditions.”

“Ganz is not respecting the people in this business who got them where they are,” Masing told TDmonthly. “Small retailers talk to each other … about who's getting product and who isn’t, and it’s been very inconsistent across the country.”

CUTTING OFF WEBKINZ

David Felton, co-owner of the online and brick-and-mortar Pamela’s Boutique LLC in Wareham, Mass., knows all about inconsistency. He told TDmonthly Magazine he was selling approximately $1.2 million of the cuddly computer toys per year when the company abruptly blocked his holiday shipment the day before Thanksgiving.

Ganz informed him that he’d been named as an eBay wholesaler and had therefore violated the terms of their sales agreement. Felton insisted he was not wholesaling Webkinz.

Ganz apparently is cracking down on online retailers because the appearance of Webkinz in Wal-Mart this month (see TDmonthly’s Dec. 6 news report) occurred behind their backs, according to an email Ganz sent to specialty retailers on Dec. 7. Ganz believes the unsanctioned toys are being bought online from retailers at near-wholesale prices and then resold. The toys have also popped up at Shaw’s, 7-Eleven, BJs, and Target. As of December 11, Ganz had not responded to queries about those stores’ status with the company. However, Limited Too and J. C. Penney are listed on Ganz's website as official retailers.

Wal-Mart’s corporate communications spokesperson, Melissa O’Brien, wrote to TDmonthly on Dec.10 that the company’s Webkinz purchase was made “through a distributor.” In a prior email, she said there were “no plans to re-order at this time — but we will see what the future brings!”

NO AFFIDAVIT, NO TOYS

That future looks dim to Felton. To continue with Ganz, he must sign one of two affidavits that force him to reveal contact information for retailers to whom he sold — whether knowingly or unknowingly — thus violating the confidentiality agreement on his website. The affidavits also give Ganz the power to shut down his shipments and renegotiate his terms at will.

In addition, he may be held liable by the company for a line of credit that was extended to him while orders were backed up and product trickled in slowly. Now he can’t entice customers to buy older product and the new product’s been blocked.

WHO’S SQUEEZING WHOM?

Of the nine toy-store owners TDmonthly reached yesterday, five had already dropped Ganz and three professed an uneasy relationship with the company. Only one was a satisfied customer:

“They've narrowed who they're going to sell to; they want those customers who are loyal,” explained Tricia Cooper, buyer for the 39-year-old family toy store Le Jouet in Metairie, La.

But Masing considered himself loyal, abiding by every condition that Ganz set, and Felton felt that he, too, had done whatever Ganz required. He told TDmonthly that he had even tried over the past two years to advise Ganz about how to identify retailers who were indeed engaged in wholesaling, but they’d ignored his recommendations. Now, ironically, he's buying from wholesalers himself.

"We have to do it to keep our store going," Felton shared with TDmonthly in January 2008, after failed attempts to negotitate with Ganz.

Janet Gregory, owner of Over the Rainbow in Anchorage, Alaska, paraphrased many complaints that TDmonthly has heard when she said, “My experience with Ganz has been a poor experience. It’s not one that entices me to do further business with them.”

Until now, dropping Webkinz and all other Ganz lines has been the most common tactic retailers have used to fight against what they perceive as unfair treatment. But Felton is considering an anti-trust suit against the company. With the two other suits pending, plus the entire state of Vermont suing the company for lead-tainted jewlery (according to the New York Times via Kloster Trading), 2008 should be a very interesting year for Ganz and Webkinz.

Click on the links below for previous Webkinz articles:
Ty Girls Spanked and Webkinz Whipped
Kookeys Aim for Webkinz Jugular
Good Co./Bad Co. – Who Makes You Burn?
Webkinz: Boom, Bust or Both?
Webkinz Knows What Kids Want
Webkinz are Exploding, Retailers Report

Catalog Request Form

Read what more than 400 retailers have told TDmonthly about toys since 2005 in Toy-Store Owners Talk to TDmonthly.

Writer's Bio: ALISON MAREK is a writer/artist/filmmaker whose work has been published by Fairchild Publications and DC Comics (Piranha Press), among others. Her short films have played in festivals around the world and have been broadcast on Showtime and other cable networks. Her short romantic comedy, "The Three-Body Solution," was sponsored by the Alfred P. Sloan Foundation and won a Director's Award at the Hearts & Minds Film Festival in 2010. Alison has been documenting the specialty toy industry since 2005 with a series of articles and videos for TDmonthly Magazine. Read more articles by this author

by Lena on December 27, 2007

Ganz will be looking at another lawsuit if they don't get their dang web site up and running. Only this one will be class action by all the parents that bought these things for thier kids and the site is so jammed you cannot even register without it locking up, then you cannot log in once you do register. I am MAD MAD MAD.

by Evelyn on December 28, 2007

OMG!! The site has been down forever! I can't believe they got sued!

by Shannan on December 28, 2007

This is a real shame for all the kids that were looking forward to opening their Webkinz on Christmas and now they cannot play with them.

by Jason on December 28, 2007

I am suing Ganz for breach of contract and the lead on the charms.

by Cutie on December 28, 2007

I do not believe in what you all are talking about. I am sorry. I have 26 webkinz. This is not fair if they shut down webkinz to all of us who have aleready bought these fun little toys. Why are you sueing? I am sorry this is not makeing sense. We have aleready bought them. Ganz is just making Webkinz World more fun when it is down. Please, respect Ganz.

by Dolly on December 28, 2007

When you open webkinz on Christmas the sites are flooded. I would not even bother to try to get on. The gifts are small and stupid

by gabbykinz on January 3, 2008

this is stupid! ganz should not be sued. I'm a kid with 5 webkinz and is enjoying webkinz very much. Just to let you know a webkinz insider member posted this ad on the form and alot of members are mad!

by funfan on January 17, 2008

a lot of members are mad they really shouldn't be sued. although many people complain, lots of kids have over fifty webkinz and enjoy all of it! webkinz are fun to all te kids and ganz should not be sued! they'd be taking away the fun for the little kids and believe me, it would nOT be pretty!

by Jessica on January 17, 2008

Please, respect Ganz! They did nothing, and I to am a kid with 10 webkinz! I pat for them with my own money, and there is no reason for this.

by Matthew on January 17, 2008

Hi! I do NOT agree that you should sue Ganz! Ganz is trying to make Webkinz better then ever when they shut the site down! If you think that you can sue Ganz, and not care about EVERY thousands of childrens who bought Webkinz, i am sure everyone would start to complain and eventually Webkinz and Ganz will return! So, think about it... Either you sue Ganz, or you keep the children happy!

by Lorraine on January 17, 2008

If they stop WW, I will be upset. I have purchased 33 webkinz! All that money gone to waste???!!! what a rip off! i dont think Ganz is ripping us off but I am mad at the peeps who sued them. errrrrrrrg

by polly111 on January 17, 2008

As usual, a bunch of greedy ***s want to ruin a good thing for children!

by Melissa on January 17, 2008

I love webkinz, but mad Ganz and webkinz are crazy sometimes.. I might just quit webkinz, to many people get to made with the glitches and buying them and selling them.

by Lizzy on January 17, 2008

OMG!!!i love webbies!!!ganz dont sue retailers!!!

by *me* on January 17, 2008

Alright, I have 80 Webkinz, so I've been around for a pretty long time. Yeah, Ganz is going to have it's up and down days, but you all need to realise that there is alot they they do for us. To all of you members who actually play Webkinz, I would truly advise you to become a member of www.webkinzinsider. You will be given the information needed to have a succesful Webkinz journey, as well as be alerted when different things are going on in Webkinz World. They will answer many of your down-right insane questions as long as you will be a little more respectuful on there, than on here. Ganz has no reason to be sued, so anyone that thinks they're going to sue them, or already has, you won't succeed as planned. Get a life, ***s.

by jhae on January 17, 2008

i have 79 webkinz and think people should stop their lying and get a life i love webkinz and have seen rip off sites that sale webkinz for 26.99 including target which is very stupid and childish and should stop there foolisness acting and grow up a little if they close the site i will be forced to sue all the companys with overpriced webkinz i hate overpricers so much i have never bought a overpriced webkinz and NEVER WILL. ___________

by jbird on January 18, 2008

Parents cannot file suit against Gangz for their website not working. Go through the Webkinz terms of use(basically they covered themselves in that fine print that your out of luck if they decided to completely shut down their website forever) You agreed to the terms of use, so there's nothing you can do.

by me on January 20, 2008

They can NOT sue webkinz.I am a kid and i'm supposed to get a webkinz.I played it before.ITS FUN!I am saving money to get webkinz.All Ganz is trying to do is make kids happy.AND THEIR DOING A GREAT JOB BECAUSE I'M SATISFIED WITH THE WEBKINZ

by PullMyBigToe on February 23, 2008

Webkinz ***s!!! They have no quality control. They do not answer any questions. It says right on the page that they will not respond to questions. In other words we will answer to no one. I say Class Action I'm in.

by Kristina on February 23, 2008

I do think its unfair to break a contract but they cannot just shut down the company otherwise their in more trouble than they are now.

by Kristina on February 23, 2008

They probably should let the kids be more active in what goes on the site and read their ideas.I personly think that if webkinz is down and you are not able to login and then webkinz is up and you login and theres new stuff they had a good reason for it to be down.

by Alex Lovington on February 23, 2008

Theres no reason to sue them theyve been sued what 3 times now they get the picture.

by Kristina on February 23, 2008

In my mind if Ganz broke a contract thats between them.I'm going to stay out of it but I will post my appinion.

by Eric Lovington on February 23, 2008

I agree with my sister

by Kaitlyn on February 23, 2008

by Goldie-Marie on February 23, 2008

they broke a contract they deserve it.But not that many times.

by Katie Lovington on February 23, 2008

They addict kid to webkinz.

by Olivia Lovington on February 23, 2008

i have 11 that not fair

by Kristina on February 23, 2008

I do think it is unfair to shut down the company they would have to give some sort of a refund

by Nellie223 on February 23, 2008

i dont think its tottaly fair to do that.Most kids are content with webkinz.They would get so mad.

by Sally Lovington on February 23, 2008

You may think theres alot of us youl see 5 more.The rest of us r babies

by Johny Lovington on February 23, 2008

Its terrible they would think of doing it.

by Mandy619 on February 23, 2008

I think its unfair and other people need to respect Ganz

by Drew on February 23, 2008

Theres like nothing they can do.its like theyre stuck cant go back or foward.

by Floyd on February 23, 2008

they need to be sued

by Kristina on February 23, 2008

They were breaching they got sued.I dont understand why they keep getting sued.

by Jason Lovington on February 23, 2008

real stupid.

by Jade on February 23, 2008

It is very wrong people are so mean.

by Sadie on February 23, 2008

i have 7 webkinz i dont want them to get sued.

by Fredy&Fanny on February 23, 2008

I dont like the fact they broke a contract.but i dont want them sued.

by Tessa on February 23, 2008

Ganz deserves it.But i have 8 webkinz and dont want them to go to waste.

by Yolonda on February 23, 2008

i'm grown and dont have webkinz my daughter does.Webkinz seems to deserve it.

by george109 on February 24, 2008

i agree with drew.

by Peydie Rank on February 24, 2008

that is true .i agree.

by Birdie Yoakmin on February 25, 2008

My daughter has 43 webkinz and my son has 26 i helped them pay for those and I don't want are money going to waste if they have to shut down.

by Gabby22170 on February 25, 2008

I have 1 and am not allowed to get webkinz anymore after my parents read this 27 days ago.

by Gabby22170 on February 25, 2008

I'm so sad about it.

by Hallie Davis on February 25, 2008

i'm 31 and have 2 webkinz my daughter is 5 and has 5 webkinz.when i have to tell her this she will have to say bye bye froggy,bear,puppy,duck and bunny.I dont want them sued at all.

by JOJO on February 25, 2008

THATS SAD

by Annie on February 25, 2008

i agree

by Lola22 on February 25, 2008

they cant sue webkinz.if my mom finds out i cant even get on.yhey said i cant get webkinz my bff sophie got one and they told all my friends parents i cant get one.My accounts gonna expire i only have 3 bear ditsy,gorilla mongo,love frog haley plus pink pony ali.

by Sophie11 on February 25, 2008

Oh know this cant happen at all.My bff lola probably cant get on now at all. i have 6 reindeer hallie,love frog buzz,lil basset hound cody,velvet elephant cozy,himalayn cat sasha,bunny gorgia

by VoiletFiji1 on February 28, 2008

i'm smarter than most kids.i had my mom call ganz she hasnt done it yet but she will and ask if they will shut down the company soon.

by Annie Zouco on February 28, 2008

I realy feel bad for the millions of kids who have webkinz.I dont have one and dont see whats so great but my sister Allie does.Personaly i find it fine for them to be sued.

by Losie Monica on February 28, 2008

it seems when theres a good thing it just has to go somewhere youll never find it.My adopted daughter Hannah 5 loves those things i do to .I dont want them gone.

by Momof4 on March 2, 2008

It's all about greed folks! Someone in the small shop saw that Ganz wasnt selling to the big retailers and probably thought, ''Hey! What a huge profit for me!'' Bingo! Next, we see Wal-Mart, Target, etc with webkinz on the shelves all over the country. These days, anyone will do anything to make millions of dollars so they can sit back and live a plush life. for what? to live the lazy care*** life, of course. Yes, the kids and even the ***s who love and play webkinzs will be the ones who get hurt the most. It is a fun and educational website design for all ages. GANZ should be looking at who ''technically'' should not had made such a huge profit for that yearmonth and investigate into how they are selling so many and nib them in the bug. Shame on Target for selling them for $26 as it were... I brought all my webkinz for $12 or less. Who making the profit here??? I am very angry at those who are taking advantage of webkinz for their own personal gain... Shame we have to live in a society who think nothing but of what in it for themself!

by Momof4 on March 2, 2008

and we need to CENSORED caref*r*e*e and ''the kids and even the a*d*u*l*t*s'' WHY??

by Cloud&Rain on March 5, 2008

Webkinz was a good thing while it lasted.I've got folks coming to our house wanting them new ones i ain't gotin yet what can we say.

by Violetfiji1 on March 31, 2008

Come on there is no reason for people to waste money on 10's of webkinz.I don't feel bad.I have 2 and I'm fine.They did what they wanted so let it be.

by birdie yoakmin on March 31, 2008

I hate it with all my heart.My daughter has 43 my son has 26.I helped them pay for those and don't want my money going to waste.It always the new duck the new that the new the new .Kids can't control themself.Ganz isnt helping them by making 3 or more a month.

by wazzup on March 31, 2008

that aint cool at all those webbies are cute.I have a few my 2 sisters do too.

by Gabby22170 on April 20, 2008

i'm adopted. Webkinz makes feel like i'm happy. I GO around the world giving kids webkin. Even if they have no computer they feel special. I DO too.I think there great and I would love to see them in Walmart.

by Carmella on April 21, 2008

I bought two Webkinz on my way back from Florida to Michigan. One of the webkinz did not have a tag. I was told I was out of luck by Ganz. Then to see tags for sell on ebay made me want to scream. Ganz could care less.

by ed on May 10, 2008

poo

by AT on May 28, 2008

Webkinz are fun

by Erin Lovington on June 21, 2008

I love webkinz!

by Jeanne on August 17, 2008

Any updates on what's going on with the Webkinz site. The site has been down for weeks and it is amazing to me no major media attention is on this. Thanks

by kelly on August 29, 2008

webkinz and ganz should not be sued because i am a major collecter and i payed for all of my webkinz in total thats thirty five of them and when webkinz goes retired i cant go on the site i only have plush and it isnt fiar because webkinz is a safe site nothing like bad advertisement or bad pictures or bad words it is safe and fun they have new things to check out everymonth and its unfair to us who have webkinz so i think webkinz should not be sued and any place that sued you should be sued instead because we bout our webkinz and for the site to just crash like that its not right and not fair to us people who have webkinz. so KEEP WEBKINZ AND YOU DONT DESERVED TO BE SUED!!!

by jake on September 23, 2008

oh my god. webkinz got sued? THIS IS THE GREATEST DAY OF MY ENTIRE LIFE!!!

by Zac on October 3, 2008

Webkinz should not be sued. they have to fix alot of stuff. maybe If people would not send so many letters maybe webkinz would not be dumb. and not be a glitch fest!!!

by Alison on November 13, 2008

If you want to find the safest, best quality toys for your holiday dollars this year, ''Positive Toys for a Promising Future'' — a *** Report from TDmonthly Magazine — can help! ''Positive Toys'' is an unbiased report featuring more than 200 incredible toys, games and gifts, most of which you've never seen or heard of before. Many of the toys profiled are from smaller, educationally minded companies that are dedicated to children's healthy development. Unlike most other holiday lists, no manufacturer paid to be considered for or included in this report. What do you have to do to get your *** Report, ''Positive Toys for a Promising Future''? Just click on the RED ***on labeled ''TDmonthly Specialty Toys Report'' at the top of this page! Have fun!

by Daniel on December 6, 2008

I ran into similar problems with Ganz. After taking an initial required purchase of non-webkinz items, I was told I had to purchase a thousand dollars worth of halloween and seasonal items I didn't need to be able to qualify for Webkinz. Then, despite my store having a similar set up to FYI, I was told we didn't qualify because we had a video and game rental section. Ganz is absolutely the worst in terms of customer service. I ended up selling ***eys instead, and they have really done well.

by Daniel on December 6, 2008

To validat the aformentioned post, I referred to K O O K EYES :)

by Daniel on December 6, 2008

Grrr.... sorry for the spelling: K O O K E Y S which I found to have an educational advantage over Webkinz as it was designed by a former teacher of the year and contains over 18,000 questions in Koo College derived from state standards. This boosted my sales with school faculty who, in turn, gave a verbal nod to parents and students. Karma Ganz, Karma.

by KoolKid on January 4, 2009

I do not like the fact that webkinz are beind sued! How can this happen?! This is so wrong!!! I have 7 webkinz and a new one. Now I can not log it in! Do you care about the millions of parents who wasted their money on webkinz?

by Chrissy on January 4, 2009

WHAT!!! No way!! But I have 3 webkinz that I didn't log on yet. My friend KoolKid is a huge fan and I hate to have to see her like this!! I agree with her!!! Try to see Gabby22170's comment. You will see the difference between now and in the past. So for people who have not bee liking webkinz, just ask yourself if this is the right thing to do. One person's feelings are as important as one-hundred people's feelings.

by Chrissy on January 4, 2009

Oh I forgot to mention that I have 134 webkinz. But I gave them all to GoodWill.

by Rose on January 4, 2009

Chrissy you are awesome!!! Heres a secret I am the presidents daughter. You are the most sweetest person ever!!!

by koolkid on January 5, 2009

Wazzup presidents daughter!!! I think you are soooo cool!!! I love webkinz just like you, and i feel bad for all the kids who got webkinz and cant log them on. :(

by koolkid on January 5, 2009

Chrissy is the coolest kid ever!!! :)

by Chrissy on January 5, 2009

Koolkid it is me Christina!!!

by Rose on January 5, 2009

Umm... Thanks Koolkid. I guess.

by Koolkid hater! on January 6, 2009

Koolkid, You think thats really the presidents daughter, wow I dont think that webkinzshould have an owner like you!!! ):

by Koolkid hater! on January 6, 2009

If you get this messege say yes or no for if it is really the presidents daughter!

by olivia on January 16, 2009

if webkinz went down i would be so sad. the prices of webkinz would go skyhigh and ive only just started collecting! ive only got 12! i hope to get over 100 at least before they stop (Though i never want them to stop)

by koolkid on January 16, 2009

WHAT I really think that is really mean, koolkidhater!!! You are cruel to webkinz!!! If I can go on webkinz you should not!!! I say poopey on you!!!

by Chrissy on January 16, 2009

KOOLKID HATER I HATE YOU!!! I LOVE KOOLKID!!! SHE IS LIKE A SISTER TO ME!!!

by koolkid on January 16, 2009

yes

by Alison on May 22, 2009

Are You the Kind of Kid Who Likes to Make Other Kids Happy? (Or Do You Know Someone Like That?) If so, then have your parents enter you in a TDmonthly Charitable Kid Contest! Click on the icon of the smiling girl at the top of the page.

by Amber123 on June 16, 2009

I have 103 webkinz. My friends thinks its crazy. I am so mad, if webkinz shuts down I will suit them for all the money me and my mom spent on them. Webkinz is getting better but it seems like they are hiding the fact the might close webkinz down and they are getting suied. It's insane

by GRACE on October 1, 2009

I don't want Webkinz to get sued! ! ! I have 27! and a calico cat that cost $25.00! I don't want her to go away :(

by $cash$ on October 8, 2009

wassup people, totally agree... no fair you are suing...we can not enter in the contests if we are in florida! this person should be stopped!

by truth on October 29, 2009

ok all you people love webkinz but come on now this is rediculous! Webkinz is a great site for kids and even ***s but these guys are ripping you off. Almost everything they've made now you have to buy something to do! It's unrealistic at how much money someone with 50 webkins might be spending. I know webkins is fun because i used to play it before when they did care about making it better. Now they just care about your money

by morgan mc. on January 2, 2010

why shut it down all kids love webkinz.my best friend rachel and i are bffs and we love webkinz and weve been on webkinz for 3 years and we work hard on webkinz to get money.me and rachels money combined is about 11,000 kinzcash and its not fair to sue them.

by grayson mc on January 2, 2010

i love webkinz so much. i dont like the toy company now!!! i will never buy another toy from that toy company.now put webkinz back in stores and ***!!!

by Just Bought This on February 15, 2010

Thought it'd be a cute valentines day present for my gf. Can't even log in. What a terrible present.

by Casandra Roach on May 28, 2010

Heh I am literally the first reply to this great writing?!?