Prince Eric's statue was a present given to him on his 18th birthday. The statue was commissioned by Grimsby, who had hoped to be able to give it as a wedding present rather than a birthday present. However, Eric is shown to be a bit less than pleased. Later, a storm sinks the ship, resulting in the statue falling to the seafloor.
It is later found by Flounder who gives it to Ariel, as she had fallen in love with the prince. When King Triton discovers that Ariel not only rescued a human, but has fallen in love with him, Triton angrily destroys it with his trident along with the other collections until he regrets his actions and sadly leaves a weeping Ariel in shame. Flotsam and Jetsam later flicked part of the statue's remains in an attempt to ensure Ariel agree to go to Ursula, after an attempt to directly suggest she go to Ursula failed. Later, Minako restores the statue along with the other collections with the Moonstone on Usagi's request to undo Triton's doing while repairing Ariel's grotto.
The same happens in Kingdom Hearts II.