'Marvelous Malia' and 'Sweet Sasha,' dolls, renamed by the Ty toy company as 'Marvelous Mariah' and 'Sweet Sydney,' were withdrawn from the market after US First Lady Michelle Obama complained.
They are still being sold on eBay and elsewhere for as much as 3,000 dollars.
"People are crazy for the dolls. It's unbelievable and borders on the irrational," The New York Daily News quoted Richard Lee, 57, from Chicago as saying.
"I wouldn't be surprised if I got 5,000 dollars for a set, it's just that hot," Lee added.
Lee scooped up six pairs of the rag dolls for the 19.98 dollars retail price at a local retailer. He has already sold two sets for 1,000 dollars each and has another on the Ebay block for 1,199 dollars.
"I've been selling Beanie Babies all my life and this escapes all reason," Lee added. ANI