Toys ‘R’ Us Reaches Class Action Settlement over ‘Free Gift’ Claims

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Toys “R” Us Inc. has agreed to settle a class action lawsuit alleging it enticed online shoppers with offers of valuable free gifts, but instead provided them with less expensive gifts or none at all, according to documents filed Monday in New Jersey federal court.

U.S. District Judge Jose Linares dismissed the Toys “R” Us class action lawsuit on Monday after he was notified that a class action settlement had been reached. No motions for class certification have been filed. The parties will be able to reopen the class action lawsuit for good cause within 60 days if the settlement is not consummated.

The Toys “R” Us class action lawsuit was filed in 2012 by plaintiff William Probert, who alleged that the toy store lured customers to shop online with the promise of free gifts, such as a $15 Barbie outfit with the purchase of a $75 Barbie doll. However, Probert alleges that the shoppers actually received significantly cheaper gifts because the company either stocked an “exceedingly limited” number of the advertised free gifts or had no intention to provide the valuable gifts at all.

Probert’s class action lawsuit accused Toys “R” Us of engaging in a “bait-and-switch” scheme, arguing that the company failed to honor its promises to give the free gifts as promised.

According to the class action lawsuit, Probert decided to visit the Toys “R” Us website based on an advertisement promising a $15 Lego building set as a free gift with a purchase. Based on this advertisement, he made two separate purchases of four Lego building sets worth $62 and $112 each. Instead of receiving a free $15 Lego building set with his purchase, he was reportedly offered a $5 Christmas tree and a $5 magnet.

Probert’s class action lawsuit alleged that Toys “R” Us either stocked a very limited number of $15 free Lego sets so that only a small number of customers would receive them, or that the toy seller never intended to distribute the free Lego sets at all.

The Toys “R” Us class action lawsuit accused the toy seller of violating New Jersey’s Consumer Fraud Act and Connecticut’s Unfair Trade Practices Act, as well as claims of breach of contract and breach of the implied covenant of good faith and fair dealing. It sought restitution, unspecified damages and an injunction barring Toys “R” Us from continuing to engage in the alleged wrongful conduct.

Further information about the Toys “R” Us class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Probert is represented by James C. Shah, Natalie Finkelman Bennett and Jayne A. Goldstein of Shepherd Finkelman Miller & Shah LLP.

The Toys ‘R’ Us Free Gift Class Action Lawsuit is William Probert v. Toys “R” Us Inc., Case No. 2:12-cv-07237, in the U.S. District Court for the District of New Jersey.