Toys "R" Us Ordered to Pay $178,000 in San Diego Overcharging Case

Following an investigation by the San Diego and Los Angeles district attorneys, a superior court judge on Monday ordered toy retailer Toys “R” Us to pay costs and penalties totaling $178,730 to resolve a consumer case involving 40 stores in Southern California.

“Our Consumer Unit worked closely with the Los Angeles County District Attorney’s Office to hold Toys “R” Us accountable and protect the consumer,” San Diego County District Attorney Bonnie M. Dumanis said in a statement.

“Law enforcement has a duty to make sure businesses follow the law, compete fairly in the marketplace, and charge the prices they advertise.”

Toys “R” Us did not admit liability, but agreed to fully comply with California’s pricing accuracy and false-advertising laws, and must implement an internal compliance program with annual reporting to the Los Angeles and San Diego District Attorneys’ Offices.

The case involved alleged pricing errors at check stands in Toys “R” Us and Babies “R” Us stores in Los Angeles and San Diego counties and other locations in the state. Between late 2009 and mid-2012, overcharges occurred in 5 percent of all purchases made by investigators, according to the complaint.

A stipulated final judgment was signed Monday by Los Angeles County Superior Court Judge Ernest Hiroshige. The agreement calls for Toys “R” Us to pay investigative costs of $28,730 and civil penalties totaling $150,000 to be divided equally among the two prosecuting counties.