Attorney General's News Release

May 25, 1999

Nixon announces Missouri to receive $909,000 in cash and toys from settlement with Toys R Us, toy makers

Jefferson City, Mo. — Missouri will receive $258,830 in cash and new toys worth $650,848 as a result of a settlement in an antitrust action against two major toy manufacturers and Toys R Us, the nation's largest toy retailer, Attorney General Jay Nixon announced today.

Nixon said the agreement between Toys R Us, Mattel and The Little Tikes Co. and Missouri and 43 other states, Puerto Rico and the District of Columbia now awaits approval by a federal district court in New York. Nationally, the deal is valued at more than $50 million in toys and cash payments to the states.

"These new toys will find their way to many needy children over the next three holiday seasons," Nixon said. "It is a fitting resolution to resolve this situation."

The lawsuit by the states alleged Toys R Us pressured the toy manufacturers into agreements to ensure that warehouse clubs, such as Sam's Club, could not obtain certain popular toys at all or that they could only obtain them in "combination packs" with other toys. Nixon said in many markets, warehouse clubs are the chief competitors to Toys R Us and the agreement with manufacturers made comparison shopping by consumers impossible for the toys and resulted in artificially higher prices for consumers.

According to the settlement terms, the toys will be distributed through the U.S. Marine Corps Reserve "Toys for Tots" program in all 50 states, Puerto Rico and the District of Columbia. Toys R Us will pay the states $40.5 million in cash and toys; Mattel, the nation's largest toy manufacturer, will pay $8,222,900 in cash and toys; and Little Tikes will pay $1,316,250 in cash and toys. Hasbro, which also was a defendant in the lawsuit, agreed last December to pay $5,950,000 in cash and toys.

Of the Missouri portion of toys, Toys R Us will provide toys worth $537,000; Mattel will provide toys worth $98,214; and Little Tikes will provide toys worth $15,724. The majority of the cash settlement will be paid by Toys R Us.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818