KIDS/SNEAK PEEK : THE REAL STORY BEHIND BEANIE BABY FRENZY.

You're at Toys R Us. The kids are whining in the aisles about all the stuff they want. Really want. Gotta have. You're just trying to get a birthday present for the kid down the street.

Then comes the killer plea: But Mom/Dad! Everybody has one! Why can't we?

How do you answer that?

Now, thanks to nonprofit Consumers Union, publishers of Consumer Reports, there's a way. Sit Junior down with a copy of Zillions, Consumers Union's magazine for children that explains how big business and Madison Avenue collude to sell everything from bubblegum to books.

In the July/August issue, Zillions writers delve into the Beanie Babies phenomenon (if you don't know what a Beanie Baby is, you're reading the wrong column).

Under the headline ``Teenie Beanies ... Big Money!'' is a short article about how Ty Inc., manufacturer of the soft, stuffed animals created a buying frenzy of Beanie Babies by keeping its supplies low and ``retiring'' the dolls regularly.

Zillions also explains how Ty worked with McDonald's to offer a smaller version of the toy, dubbed Teenie Beanies, as free prizes inside Happy Meals. As collectors bought Happy Meals by the dozens, and Ty worked to make more Teenie Beanies for McDonald's, store owners waited and waited for the bigger versions, whipping up an even bigger panic in the populace.

Another article exposed the sham of ``low-power'' batteries that toy manufacturers install in merchandise - batteries that work in the store but poop out shortly after the stuff comes out of the box.

Managing editor Karen McNulty says the philosophy of the magazine is that kids want to know the truth about the world.

``The idea is to turn kids into educated consumers. We want them to learn how to critically evaluate products and to think about what makes a product of quality and whether the cost is worth it.''

Does she worry that she's turning kids into cynics?

``Kids appreciate that we acknowledge their intelligence,'' McNulty says. ``They don't want to be stupid. They have this income of $5 a week from baby-sitting or allowance, and they don't want to get ripped off.''

The magazine also uses kid panels to rate toys. The summer issue also features kids' written suggestions for ways to bust boredom without spending a wad of cash.

All test items are purchased anonymously, and Zillions accepts no advertising.

A one-year subscription (six bimonthly issues) costs $16. For a subscription, write Zillions, P.O. Box 54861, Boulder, Colo. 80322-4861. Or call [phone].

Camp Noah-how

Los Angeles County will be accepting donations through Friday for Kids to Camp, a program that enables underprivileged children to experience summer camp.

Last year, Noah's employees and customers donated $15,000, which sent 112 kids to selected camps. The program is administered by UCLA's UniCamp. This year, the campaign has already raised $40,000.

For the Noah's location nearest you, dial [phone].

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Photo

Photo: Some rather dubious marketing techniques help heighten children's desire to collect Beanie Babies, according to Zillions magazine.

Tom Mendoza/Daily News