Posts Tagged ‘Babies “r” Us’

Babies ‘R’ Us antitrust case goes ahead

July 17, 2009

“A federal judge in Philadelphia certified a class action on Wednesday accusing a Toys “R” Us division of conspiring with baby-product makers to keep prices high in an effort to compete with online retailers.
     Faced with stiff competition from Web sales, Babies “R” Us allegedly strong-armed manufacturers into fixing prices on baby items, including strollers, high chairs and car seats. Online retailers typically have lower overhead costs and can deeply discount the merchandise and still make a profit.
     Consumers claimed the collusion between Babies “R” Us and manufacturers violated federal antitrust law and forced consumers to pay artificially inflated prices. ”