The company also buys about 30 percent or more of the large toy companies’ total output and is usually their most important customer. Toys "R" Us offers an assortment of about 11, 000 individual toy items throughout the year. Toys "R" Us, based in Paramus, New Jersey, has about 650 stores located throughout the United States and roughly another 300 stores in foreign countries. "Indeed, a remarkable irony of this case is that if the law were as Toys "R" Us contends - if a large could cut off or encumber a new or innovative source of supply by exercising market power against suppliers - then Toys "R" Us, itself an innovative marketer resented by larger and less dynamic a generation ago, could have been denied an opportunity to compete on the merits and win in the marketplace." "Toys "R" Us rose to its current position as the largest toy retailer in the United States by offering a larger selection of toys than any other retailer at the lowest prices," said Chairman Pitofsky. The Commission’s opinion, authored by FTC Chairman Robert Pitofsky, explains that Toys "R" Us wanted "to prevent consumers from comparing the price and quality of products in the clubs to the price and quality of the same toys displayed and sold at Toys "R" Us, and thereby to reduce the effectiveness of the clubs as competitors." The Commission determined that to eliminate this threat, Toys "R" Us used its dominant position as a toy distributor to extract agreements from and among toy manufacturers to stop selling to warehouse clubs the same toys that they sold to other toy distributors. Toys "R" Us, the FTC said, was concerned that warehouse clubs - with substantially lower prices - presented a threat to its low-price image and its profits.
Toys "R" Us, the nation’s largest toy retailer, was ordered today by the Federal Trade Commission to stop engaging in illegal practices that keep toy prices higher and reduce choice for consumers. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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