May 25, 1999
Media Contact: Sandi Copes
Phone: (850) 245-0150
Companies To Donate $32.7 Million Worth Of Toys, Pay $17.3 Million Cash To Settle Antitrust Charges
TALLAHASSEE -- For the second year in a row, Florida's neediest children can look forward to a brighter holiday season thanks to agreements announced today by Attorney General Bob Butterworth and Comptroller Robert Milligan.
Without admitting wrongdoing, Toys 'R' Us, Mattel Inc. and Little Tikes Company will settle price fixing charges by donating a total of $32,722,650 worth of toys over the next three years to the U.S. Marine Corps' "Toys for Tots" program in all 50 states, the District of Columbia and Puerto Rico. The companies also will pay a total of $17,316,500 in cash, most of which will be used to purchase toys, books or other educational materials.
Under the agreements, Florida will receive $1,750,988 worth of toys over the next three years and $568,500 in cash. Last December, Florida received more than $191,000 worth of toys and more than $127,000 in cash from Hasbro Inc. under an agreement settling price fixing charges against that company.
"The holiday season may be months away, but the holiday spirit is already here," Butterworth said.
Milligan, who annually chairs a "Toys for Tots" campaign, added: "The Hasbro agreement helped make last year's campaign a great success. The latest agreements will provide a similar boost for years to come."
Under the agreements, Toys 'R' Us will contribute $27 million worth of toys and pay $13.5 million in cash. Mattel will contribute $4,932,900 worth of toys and pay $3.29 million, while Little Tykes will contribute $789,750 worth of toys and pay $526,500.
In 1997, Toys 'R' Us, Mattel, Little Tykes and Hasbro were charged with conspiring to fix prices by withholding popular toys from discount price warehouse clubs.
The civil complaint charged that retail giant Toys 'R' Us brokered an unlawful agreement among the toy manufacturers to ensure that warehouse clubs could obtain certain popular toys only in "combination packs," which cost consumers more and whose prices could not be compared with those at Toys 'R' Us.
The case was handled for Florida by Antitrust Chief Trish Conners and Assistant Attorney General Jay Vail.