State Joins Suit Against Toy Companies

State Atty. Gen. Dan Lungren on Monday joined a multi-state action against toy retailer Toys R Us and four major toy makers, alleging price-fixing conspiracies on popular toys.

Lungren and 36 other state prosecutors joined in a suit filed Oct. 2 in New York against Toys R Us Inc., Mattel Inc., Hasbro Inc., Tyco Toys Inc. and Rubbermaid Inc.’s Little Tikes Inc.

Lungren said at a Sacramento news conference that the action is an attempt to recover threefold the money paid by consumers who were “injured by this carefully orchestrated scheme to fix prices nationwide.”

In its Oct. 2 federal lawsuit, New York accused the toy makers of agreeing to cut off supplies to Price/Costco Inc. and Wal-Mart Stores Inc.’s Sam’s Club because the warehouse stores would cut prices of their popular toys.

Lungren said Toys R Us arranged these agreements that permitted the toy companies to sell to other discount stores only specially bundled packs of toys that consumers could not easily compare to the products on the Toys R Us shelves.

On Monday, New York Atty. Gen. Dennis Vacco’s office, which is seeking refunds for consumers who bought toys from retailers since 1989, filed an amended complaint adding 37 states, Puerto Rico and Washington, D.C. The suit followed a Federal Trade Commission judge’s ruling that Paramus, N.J.-based Toys R Us, the nation’s largest toy retailer, violated antitrust laws.

The case--with or without additional states--has no merit, said spokeswomen for Toys R Us and Wooster, Ohio-based Rubbermaid. Toys R Us has appealed the FTC ruling against the company, said Toys R Us spokeswoman Rebecca Caruso.

Mattel officials declined to comment, and Hasbro officials weren’t immediately available to comment.