He looks very similar to the real Mr. Krabs. He has the same light blue shirt, periwinkle pants, and crimson skin.
He appears in the episode "Bummer Vacation" when SpongeBob tries to find something to get his mind off the Krusty Krab during his vacation. He then finds his Krusty Krab Playset, which contains this toy, along with a Toy SpongeBob, Toy Patrick, and Toy Squidward. However, after he reenacts the scene where Mr. Krabs kicks him out of the restaurant earlier in the episode, the toys only worsen the situation for him.