FTC Investigators Recommend Complaint Against Toys R Us

Federal Trade Commission antitrust investigators have recommended that the agency file a complaint charging that Toys R Us Inc., America’s largest toy chain, has used its buying power to stifle competition, according to a published report Wednesday.

Since 1994, the FTC has been investigating complaints that Paramus, N.J.-based Toys R Us has pressured major manufacturers to keep deep-discount retailers such as Price/Costco Inc. from having access to a number of popular toys, such as certain versions of Barbie dolls.

According to the newsletter FTC: Watch, antitrust investigators at the commission have recommended that its five members approve the filing of a complaint against Toys R Us.

The FTC would not comment on the report. Executives at Toys R Us did not return calls seeking comment.

Toys R Us sells more than 20% of the toys sold in America. The FTC investigation involves complaints that the company used the fierce competition for shelf space in its stores to pressure makers to keep certain popular toys out of the hands of discount competitors.