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Baby Einstein Refund Program Expanded by Disney

The Walt Disney Co. announced that it will expand its Baby Einstein refund program by offering cash refunds on any DVDs bought from June 5, 2004, to September 4, 2009.

The company has been under scrutiny concerning the educational aspect of the Baby Einstein products.  Customers are given the option of exchanging DVDs for a Baby Einstein book or music CD, or receive a 25% discount on any other Baby Einstein product.  The new program offer expires March 4, 2010.

The attack on the product line was launched by The Campaign for a Commercial-Free Childhood with a complaint to the Federal Trade Commission in May 2006 alleging that educational claims on the Baby Einstein web site and the product packaging were not supported by scientific research.  They do not believe that videos teach words to babies under 2 years old.  Some pediatric experts say that watching television can lead to attention problems.  The American Academy of Pediatrics has also questioned whether television or videos will enhance the skill development of children under two years of age.

Although the company refuted the claims, Disney eventually removed some of the testimonials from the Baby Einstein web site and modified the product packaging.  In December, 2007, the FCC decided to take no formal action after investigating the claims.

The Campaign for a Commercial-Free Childhood was not satisfied with Disney’s action and retained attorneys who threatened a class-action lawsuit against Disney.  It is unclear at this point whether Disney’s expanded refund program will settle the threatened lawsuit.

“We believe that this is an acknowledgment that baby videos are not educational,” said Susan Linn, a psychologist and director of The Campaign.

The Baby Einstein Company was founded in 1997 by Julie Ainger-Clark, a mother and former educator, and was later bought by Disney in 2001.

For complete details of the refund program, visit The Baby Einstein DVD Upgrade/Moneyback Guarantee.

         

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Baby Einstein DVD customers are offered refund by Disney

Disney is giving customers who purchased Baby Einstein DVDs their money back, in a victory claimed for parents by the Campaign for a Commercial-Free Childhood, “who mistakenly thought baby videos were educational”.

To all appeareances this seems to be an admission by Disney that they did not increase infant intellect.

A full refund of $15.99 is being offered by Disney to anyone who purchased a Baby Einstein DVD between June 5, 2005 and Sept. 4, 2009. You can exchange upto four DVD’s and no receipt is required. Customers can also exchange the DVDs, including popular titles like, “Baby Mozart,” “Baby Shakespeare” and “Baby Galileo” for books, music or a 25 percent off coupon other Baby Einstein products.

Baby Einstein, acquired by Disney in 2001, has a full line of books, toys, flashcards and apparel, along with DVDs. The DVD’s feature music, puppets, bright colors, and not many words. According to a 2003 study, a third of all American babies from 6 months to 2 years old had at least one “Baby Einstein” video.

The Campaign for a Commercial-Free Childhood alleged the offer is a result of a complaint that was filed with the Federal Trade Commission about Baby Einstein’s marketing claims. The CCFC filed the complaint in 2007, citing the fact that there is no credible evidence that screen media can educate infants. Soon after, Disney removed the educational claims from Baby Einstein products.

CCFC director Susan Linn claimed the refund as a victory for parents. “It’s a wonderful opportunity for parents who mistakenly thought baby videos were educational. We hope other baby video companies will follow suit.”

The American Academy of Pediatrics recommends no screen time at all for children under 2.

         

Toys R Us Under Investigation for Price-Fixing Baby Products

Toys R Us is under investigation by the Federal Trade Commission to determine if the largest toy store chain in the United States improperly acted to keep prices of baby products high.

Investigators are reviewing the company’s Babies R Us division emails with manufacturers concerning pricing agreements with rival retailers for products such as high chairs, strollers, car seats, and breast pumps.

The Wall Street Journal reported yesterday that the chain may be in violation of an 11-year-old FTC order concerning tactics which discourage product discounts and keep prices high.  In 1998, an administrative law judge ruled that Toys R Us had illegally exercised its market power with toy makers by threatening to stop selling toys also being sold by discount retailers.  Toys R Us then consented to the FTC order which is currently under investigation.

The issue of whether retailers can agree to set minimum retail prices on products has been a hot topic in the business world for years.

Toys R Us has a 60-year history.  The company launched its Babies R Us division in 1996, and that division has grown to more than 260 locations.  Earlier this year, Toys R Us broadened its internet presence by acquiring e-commerce sites eToys.com, babyuniverse.com, ePregnancy.com, and Toys.com.  In May, the company acquired FAO Schwarz and its internet business operating at FAO.com.  FAO Schwarz was widely recognized as a symbol of quality and innovation in the world of children’s retailers.

These acquisitions certainly posture the company for major control of toy and baby product markets.