FTC Sues 1-800 Contacts for Restraint of Trade

"A leading proponent of the Coalition for Contact Lens Consumer Choice, 1-800 Contacts has been called to task over business practices found to undermine contact lens marketplace competition, antitrust regulators say." That's the post from the American Optometric Assn. (AOA). "The U.S. Federal Trade Commission (FTC) filed suit against 1-800 Contacts on Aug. 8, alleging that the company unlawfully used its market power to orchestrate and maintain anti-consumer agreements with rival online contact lens retailers. These agreements not only suppress competition in online search advertisements, but also "restrict truthful and non-misleading internet advertising to consumers, resulting in some consumers paying higher retail prices for contact lenses," according to the FTC's administrative complaint." Read more.

FTC Warns Prescribers and Sellers about Violation of Contact Lens Rule

"The Federal Trade Commission (FTC) announced that it has warned 45 contact lens prescribers and 10 contact lens sellers that they may be violating the agency’s Contact Lens Rule, which helps consumers comparison shop for contact lenses and ensures sales occur only to those with valid prescriptions," writes Legal Newsline. "The rule mandates that prescribers that fit patients for contact lenses give the patients the prescription at the end of the fitting. These prescribers cannot charge additional fees for handing over the prescription, nor can they force a patient to buy contacts directly from them." Read more.

Valeant Reportedly Considering Sale of Paragon

CNBC has posted the following Reuters story: "Valeant Pharmaceuticals is reaching out to potential buyers for its specialty contact lens manufacturing division, Paragon Vision Sciences, amid scrutiny from the Federal Trade Commission, according to two people familiar with the matter.

"A sale of Paragon, which Valeant's Bausch & Lomb unit purchased earlier this year for an undisclosed sum, would deal a blow to the specialty pharmaceutical company's attempt to consolidate the market for gas permeable contact lenses, a type of rigid lens popular among people with keratoconus, a thinning disorder of the cornea, among other eye diseases. The FTC [Federal Trade Commission] has been investigating Valeant for potentially cornering a portion of the lens market." Read more.

FTC and DOJ Investigate Valeant's Eye Care Business

"Valeant Pharmaceuticals, which has been under the gun over its relationship with specialty pharmacies and price hikes on its heart medications, is facing new legal challenges as U.S. investigators look into the embattled company's growing eye care business," reports CTV. "Valeant disclosed Monday that it is subject to separate investigations launched by the Federal Trade Commission and Justice Department. The FTC has requested information and documentation related to its "non-public investigation" of Valeant's acquisition of Paragon Vision Sciences in May, the Laval, QB-based company said in a regulatory filing about its third-quarter results. Valeant also said the Justice Department has issued it a subpoena as part of a criminal investigation into Bausch & Lomb's payment to medical professionals related to its surgical products Crystalens IOL and Victus femtosecond laser platform. Valeant said it is co-operating with the investigation into possible violations of federal health-care laws." Read more.

Reuters News Service offered more about the company. "Valeant entered the contact lens business with its purchase of Bausch and Lomb in 2013 for $8.7 billion. At the time of the acquisition, Bausch and Lomb manufactured about 75% of the basic components of rigid gas permeable lenses, known as “buttons,” said Kurtis Brown, who worked for Bausch and Lomb prior to Valeant’s purchase. After manufacture, buttons are customized for individual patients, typically by laboratories specializing in that process. With the acquisition of Paragon Vision Sciences in May for an undisclosed sum, Valeant and Bausch and Lomb further consolidated their grip on the market, gaining control of more than 80% percent of the gas permeable button market, according to one of the sources familiar with Valeant’s operations and the representative of an industry group. Rigid lenses comprise only about 10% of the contact lens market." Read more.

FTC Put OD and MD Practices Under Microscope

"Eye doctors are coming under the microscope from federal regulators," reports The Hill. "The Federal Trade Commission (FTC) is considering replacing long-standing rules that govern how eye doctors prescribe glasses and contact lenses. The possible changes to the rules come as part of a regulatory review by the agency. The current rules are intended to protect the health of patients’ eyes while giving them more opportunities to bargain-hunt for better prices. Eye doctors can only sell glasses and contacts to patients after they have conducted an eye exam or verified a prescription from another eye doctor. This prevents eye doctors from selling the wrong prescription to their patients." Read more.

FTC Prohibits Claims of Eye Benefits

Stopping bogus health claims, the Federal Trade Commission (FTC) has reached a settlement requiring major marketers of children's vitamins, NatureSmart and Rexall Sundown, to stop making false and unproven claims that their supplements promote healthy brain and eye development in children.  The companies have agreed to pay $2.1 million to provide refunds to consumers who purchased certain multivitamins in their Disney and Marvel Heroes line. For more click here.