U.S. toy retailer Toys “R” Us has reversed its decision regarding the winner of its “First Baby of the Year Sweepstakes” contest.

The company created a controversy, particularly in the Chinese-American community, when it had originally denied the first prize $25,000 savings bond to the first baby born in 2007, Yuki Lin, who was born at the stroke of midnight at New York Downtown Hospital, because the child’s mother was not born in the U.S., and hence was not a U.S. citizen and therefore ineligible for the prize.

Here, Chinese children are shown shopping at the company’s first store in China, opened December 8, 2006 in Shanghai.

Toys “R” Us graciously permits Chinese children to buy the company’s products
Mark Ralston, Getty Images

Ironically, China makes about three-quarters of the world’s toys and is the global toy industry’s largest exporter.

Toys R Us Mascot Jeffrey: “Wait, come to think of it, we love Chinese babies. Heck, they make most our toys!”

High marks to Toys “R” Us for reversing this decision, but a stern wag of the finger for making such a stupid decision in the first place. To discriminate on the basis of race, nationality, religion, ethnicity, gender or any other similar criteria is mean-spirited, dumb (and generally illegal). But to take on the world’s largest nation and its people in the U.S. and at home, is an extraordinarily lame business decision as well. At least Borat chose to offend the people of Kazakhstan, who have little buying power or political power.