According to the good folks at Snopes, the "Save Toby" website is a scam. It's not even that original. This prank has been pulled before... recently, as "Save Bernd" at European website.

Rest easy folks. It seems that the only thing being done to Toby is shameless exploitation.

On the other hand, I'm still well short of the $7.50 I demanded, and I swear, if someone doesn't come up with the money, Mr. Peeps gets it!