The Federal Trade Commission, or FTC, is investigating whether retail giant Toys "R" Us Inc. used its market clout to stifle discounted prices of baby products at baby retailers and forced consumers to pay higher prices, the Wall Street Journal reported Saturday, citing people familiar with the matter.
The WSJ report noted that FTC is examining whether the biggest toy store chain in the U.S. violated an 11-year-old FTC order. Toys "R" Us had consented to a 1998 order from an administrative law judge barring it from illegally wielding its market power to force toy makers into boycotting Costco Wholesale Corp. (COST) and other discount warehouse clubs by threatening to stop selling any toys also being sold by these competitors.
Wayne, New Jersey-based Toys "R" Us could face a new FTC complaint for allegedly trying to fix the prices of baby products, including strollers, high chairs and car seats sold at Babies "R" Us, a unit of Toys "R" Us, according to the WSJ report.
FTC investigators are reportedly expected to review more recent e-mails exchanged among Babies "R" Us and manufacturers involving whether rival retailers had agreed to charge the manufacturer's suggested retail price, or MSRP, for various products. Toys"R"Us operated as a public company from 1978 until July 2005, until an investment group consisting of affiliates of private equity firms Bain Capital Partners LLC and Kohlberg Kravis, Roberts & Co. (KKR) as well as real estate investment trust Vornado Realty Trust (VNO) completed the company's acquisition for $6.6 billion.
The company currently sells merchandise in more than 1,550 stores, including 848 Toys "R" Us and Babies "R" Us stores in the U.S., and more than 700 international stores in 33 countries.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.