Kids Profit from Toy Settlement
Posted December 9, 1998 6:00 a.m. EST
RALEIGH — Some North Carolina kids will soon get their share of $100,000 worth of toys, as part of a settlement between the state andHasbro.
The Attorney General's office is donating the gifts toToys for Tots, a U.S. Marines program that will be given at least $100,000 worth of toys as the result of a settlement over an alleged price-fixing scheme.
Toys "R" Usand four large toy manufacturers have allegedly conspired since 1989 to withhold popular toys from low-price retailers that undercut Toys "R" Us's business.
Attorney General Mike Easleyexplains the effect the alleged conspiracy had on consumers.
"It kept the prices from being competitive. It made the prices go higher. Kids had to pay more for their toys," Easley says. "And that is the basis of the violation, the basis of what they've been sued on."
North Carolina is not the only state involved in the settlement; 43 states attorneys general filed the lawsuit.
And the case is far from finished. Hasbro is only one of four toy makers that has settled. There are 3 others to go, plus Toys "R" Us.
Hasbro settled for $6 million total. North Carolina has already received $100,000 in the form of toys. The other $75,000 that Hasbro is giving to the state is in the form of cash; there's still some legal wrangling that has to go on to make sure that money gets transferred to North Carolina before the holiday season ends.