McDonald's Fined in Brazil over 'Happy Meal' Toys

U.S. fast food giant McDonald's has been fined $1.8 million in Brazil over its "Happy Meal" toys, which consumer advocates say encourage bad eating habits in children, state media has reported.

The Foundation for the Protection and Defense of the Consumer in Sao Paulo imposed the fine after a consumer group filed a complaint with it against the global fast food chain.

The group filing the complaint accused McDonald's of "encouraging the formation of distorted values" by using the toys to market meals to children, Agencia Brasil reported Tuesday.

McDonald's can appeal the ruling.

The agency quoted McDonald's as denying any wrongdoing, saying the toys could be purchased separately from the meals.

McDonald's reported better-than-expected profits of $1.51 billion in the third quarter of this year.