Toys

Three major retailers have agreed to pay nearly half a million dollars to settle a lawsuit stemming from the companies' sale of toys containing excessive amounts of lead, the California attorney general's office said Thursday. Under the agreement, Target Corp., Toys R Us Inc. and Kmart would pay a total of $454,000 in civil penalties and other fines. The retailers, along with several manufacturers including Mattel Inc., were sued by the attorney general's office and the Los Angeles city attorney's office in November 2007 after the firms were found to have sold or made toys with unsafe levels of lead paint.

Bashing pint-size radio-controlled monster trucks around bumpy dirt tracks has always been a blast for Dan Dunst, who opened a hobby shop specializing in the pricey toys near downtown Los Angeles last year. But his store, VG Racing, was soon broadsided by the sour economy. Sales at the shop and its online sites have slipped over the last six months, and now Dunst and his wife, Sarah, have to figure out whether the company can continue. "I'm being run over," said Dunst, 50, who also designs and manufacturers custom roll cages for the zippy vehicles that sell for $250 to $800 or more.

Beck obituary: The obituary in Thursday's California section of Hans Beck, the German inventor of Playmobil toys, did not report the date of death. He died Jan. 30.

Mad at disgraced investor Bernard Madoff? There's a toy just for you. At this week's Toy Fair in New York, Phoenix-based ModelWorks presented the "Smash-Me Bernie," a $99.95 Madoff doll that wears a devil-red suit and comes with a hammer -- so you can pulverize it. Madoff was arrested in December after investigators said he confessed to his sons that he had swindled investors of $50 billion in a Ponzi scheme.

One lucky child won't have to do chores around the house or sell lemonade to make money this summer. Los Angeles-based ToyQuest is searching for candidates for "the best summer job in the world" -- a toy tester who will earn big bucks to play with some of the company's latest products. The job pays $100 an hour and includes hotel accommodations and round-trip airfare to L.A. The tester will play with toys and product samples from the company's Banzai line, which includes water slides, bouncers, water and foam blasters, sprinklers and pool toys.

Toys R Us Inc. is bringing cheap toys front and center. Starting today, the toy giant is introducing $1-$2-$3 Fun! shops in the front of its stores to help parents provide affordable fun for their children. Since the holiday season, several toy makers and retailers have boosted their selection of inexpensive toys in response to weak consumer spending amid the recession. Each $1-$2-$3 Fun! shop features about 100 items for $3 or less with themes such as dinosaurs, games, princess dress-up accessories, musical instruments and art supplies.

Move over, Barbie -- paper towels and toilet paper are now getting front and center treatment at many Toys R Us stores. The chain says it is rolling out an expanded assortment of "consumables and commodities" in select stores nationwide to "help make shopping even more convenient for time-strapped parents." Located at the front of more than 260 of the company's 585 Toys R Us stores, R Market features about 1,300 products, including snacks and beverages, paper goods and cleaning supplies.

Amazon.com Inc. agreed to pay $51 million to Toys "R" Us Inc., settling a 5-year-old lawsuit with the largest U.S. toy-store chain. The settlement will be paid in the third quarter, the Seattle company said. Toys "R" Us will then dismiss all claims, Amazon said. Toys "R" Us sued Amazon in 2004, alleging that it broke an exclusive contract and allowed third parties to sell toys on its website. Toys "R" Us had sought $65 million for past fees and additional damages for lost sales.

After an unprecedented year of toy recalls, the Consumer Product Safety Commission is adding staff at the nation's busiest ports and pledging to work more closely with the U.S. Customs Service to stop suspect imports and identify potential hazards before toys hit the market. Congress provided the CPSC with an additional $20 million for the current fiscal year but has stalled on legislation that would significantly strengthen the agency's regulatory powers. Under the new initiatives, the CPSC will begin to place full-time staff at some of the nation's busiest ports.

The maker of Thomas & Friends toy trains has agreed to pay $30 million to settle a nationwide class-action lawsuit filed on behalf of by thousands of families that purchased lead-tainted toys, a plaintiffs' attorney said. Under the deal, Oak Brook, Ill.-based RC2 Brands will offer cash refunds or replacement toys, plus what the company calls a bonus toy; it also promises to implement new quality controls, said the lawyer, Jay Edelson. In June, RC2 began recalling about 1.5 million items in the first of several major roundups involving lead in toys made in China.