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 Questions Changes Proposed by NC's Board of Opticians

The staff of the Federal Trade Commission sent comments to the North Carolina Board of Opticians explaining that the board’s proposal to restrict the sale of contact lenses, eyeglasses, and other optical goods in the state is likely to raise costs to consumers unnecessarily. The comments also state that the proposal appears to conflict with the federal Fairness to Contact Lens Consumers Act and the FTC’s Contact Lens and Eyeglass Rules, both of which protect consumers’ ability to get their eye prescriptions promptly and at no charge so they can comparison shop for eyeglasses or contact lenses.

Several provisions of the Proposed Rule raise competitive concerns, the comments state, including sections that would do the following:

1. Redefine contact lens and eyeglass prescriptions so that opticians would not have to give consumers the measurements needed to fill their prescriptions,
2. Impose new requirements on Internet sellers that do not apply to brick-and-mortar stores,
3. Impose new requirements on some out-of-state sellers that are not imposed on sellers located in North Carolina.