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Amazon.com Sued by Candymaker for Infringement Over Sales of Smarties

Amazon.com Inc., the world’s largest online retailer, was sued by the maker of “Smarties” candies, which wants to stop the company from selling its products.

Ce De Candy Inc. of Union, New Jersey, claimed Amazon.com is infringing its trademark by selling Smarties made by Nestle SA for sale outside the U.S. The products that Amazon.com sells include “Nestle Smarties Chocolate 160g Box” and “Smarties in a Bay by Nestle,” according to the complaint in federal court in Newark, New Jersey.

The complaint claims Ce De Candy notified Amazon.com of a similar infringement on Dec. 15, 2008, and the retailer stopped selling the product two days later.

“We want them to stop selling it online,” Ce De Candy attorney Amy Goldsmith said today in a phone interview. “We want them to keep their word. We want them to actively monitor so that this doesn’t occur again.”

Ce De Candy is a family-run business that sells billions of Smarties candy rolls each year, according to its complaint filed June 3.

“We have a long-standing practice of not commenting on active litigation,” Mary Osako, a spokeswoman for Seattle-based Amazon.com, said in an e-mail.

Ce De Candy accuses Amazon.com of trademark infringement, unfair competition and false advertising. It seeks a halt to the online sales, unspecified damages and legal fees.

The case is Ce De Candy Inc. v. Amazon.Com Inc., 10-cv-02856, U.S. District Court, District of New Jersey (Newark).

To contact the reporter on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net.

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