Toys R Us Was A Bully, Judge Says

An administrative judge has upheld federal regulators’ charges that the nation’s largest toy retailer, Toys R Us, unfairly used its clout to bully manufacturers to stop selling their popular products to rival warehouse clubs.

Judge James P. Timony, in a ruling announced Tuesday, found that Toys R Us illegally warned manufacturers it might stop carrying certain toy lines if the products also were offered to such discount warehouse competitors as Price Club, Sam’s or BJ’s.

The charges were filed in a May 1996 complaint by the Federal Trade Commission, which accused the company of using its status to keep prices artificially high and its competitors at a comfortable distance.

A spokeswoman for the Paramus, N.J.-based chain called the ruling disappointing. She said an appeal would be filed immediately.