The Federal Trade Commission is investigating Toys "R" Us for illegally keeping prices high on baby products. The retailer is also being sued by consumers and online retailers. 2 lawsuits filed over 3 years ago have been consolidated into 1 case. The lawsuit alleges that Babies "R" Us (owned by Toys "R" Us) was able to keep prices high by coercing toy manufacturers to make agreements with other retailers that the products would not be sold below a certain minimum price.
Two online baby retailers, BabyAge.com and Baby Club of America, say they ultimately lost business because of pressure from toy manufacturers - who were under pressure from Babies "R" Us - which stopped the retailers from discounting their merchandise.
Toys "R" Us says the accusations have no merit. The case is expected to head to court next year. If the class action case is successful, consumers could see lower prices at Babies "R" Us, and Babies "R" Us customers found to have overpaid for products could be awarded damages.
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