Battle about Unilateral Pricing of Contact Lenses Now in Federal Appeals Court

"A legal battle over a hotly contested Utah law banning minimum prices for contact lenses is set to come before a federal appeals court on Thursday," reports U.S. News & World Report in an Associated Press post. "The nation's largest contact lens companies are asking the 10th Circuit Court of Appeals in Denver to strike down the measure that could have wide-ranging effects on the $4 billion industry. Alcon Laboratories, Johnson & Johnson and Bausch & Lomb call the law a brazen overreach written specifically to help Utah-based discount seller 1-800 Contacts. Lawmakers deny that. The state's attorney general contends the contacts manufacturers are wrongly driving up prices." Read more.

Meanwhile, "as part of the Federal Trade Commission's systematic review of all current FTC rules and guides, the FTC is seeking public comment on the efficiency, costs, benefits, and impact of the Contact Lens Rule," notes the Yuma News Now. "The Rule, effective since August 2004, helps to promote competition in the contact lens market by requiring eye care prescribers to provide a copy of a consumer’s prescription to the consumer after a contact lens fitting is completed and verify with, or provide prescriptions to, authorized contact lens sellers. It also mandates that a contact lens seller may sell contact lenses only in accordance with a prescription the seller has received from the patient or prescriber, or has verified via direct communication with the prescriber. The Commission vote approving the Federal Register Notice was 5-0. It is available on the FTC's website and as a link to this press release and will be published in the Federal Register soon." Read more.

1-800 Contacts Wins! Federal Appeals Court Will Allow Ban on UPP of Contact Lenses

"A federal appeals court ruling has cleared the way for discount contact lens retailers to drop prices while a legal battle is waged between the state of Utah and manufacturers who want to impose minimum prices on their products," reports U.S. News & World Report. "The decision handed down from the 10th Circuit Court of Appeals in Denver on Friday comes after three of the nation's largest contact lens manufacturers sued to halt a hotly contested law. Supporters, including Utah-based discount seller 1-800 Contacts, say the newly enacted legislation bans price fixing for contact lenses. But opponents, including Alcon Laboratories, Johnson & Johnson and Bausch & Lomb, say it's a brazen overreach that allows discount sellers to violate interstate commerce regulations and skirt industry price standards. Utah's attorney general has said the companies are wrongly driving up prices, and the law is a legitimate antitrust measure designed to enhance competition and help customers. Attorney General Sean Reyes' office didn't have a comment on the decision Friday." Read more.

Alcon, B&L, and J&J Sue Utah Over Contact Lens Bill

"Three leading national contact lens manufacturers are ganging up in federal court to try to prevent enforcement of new amendments to Utah law that they say are aimed at protecting Utah-based 1-800 Contacts at the expense of the U.S. Constitution," reports the Salt Lake Tribune. "Alcon Laboratories Inc., of Fort Worth, Texas; Bausch & Lomb Inc., of Bridgewater, N.J.; and Johnson & Johnson Vision Care Inc., of Jacksonville, Fla., are asking the U.S. District Court in Utah to stop state Attorney General Sean Reyes from enforcing SB169, which was signed last month by Gov. Gary Herbert.
In its lawsuit, Alcon said the passage of SB169 was under "the specter of protectionism" with 1-800 Contacts' officials offering testimony in support of the bill during its legislative passage. Bauch & Lomb, in a separate lawsuit, said the measure was "motivated by a parochial desire to protect a major in-state business at the expense of a targeted class of out-of-state corporations." Read more.

Read more about the Utah ban and potential bands in Idaho, Illinois, and California and similar legislative efforts in New Jersey and Oregon.