Toys ‘R’ Us Subject of FTC Probe
October 17, 2009 by Mark Ellis
Filed under Business
Toy retail giant Toys ‘R’ Us has come under investigation by the Federal Trade Commission concerning its possible breach of a court order that prevents the company from using its market influence to prevent rivals from selling discounted baby products.
According to people familiar with the case, Toys ‘R’ Us has now come under fire for allegedly attempting to set the price of strollers, high chairs, car seats, and breast pumps sold at Babies ‘R’ Us.
A court order issued in 1998 prevented the toy retailer from using its massive market clout to force manufacturers to not sell their goods to discount outlets, such as Costco Wholesale Corp., by threatening to not buy any of the manufacturer’s products also sold by Toys ‘R’ Us competitors. Toys ‘R’ Us agreed to the outcome of the case, but could now face a new problem because of its recent actions.
A spokesperson for Toys ‘R’ Us has stated that the FTC began looking into Toys ‘R’ Us’s actions a year ago and that the retailer has cooperated with the FTC throughout the investigation.
Image: Flickr
