SALT LAKE CITY, March 27, 2015 /PRNewswire/ -- Today, in a
victory for consumers, the Contact Lens Consumer Protection Act was
signed into law, making Utah the
first state to ban contact lens manufacturers from unfairly fixing
retail prices on contact lenses through Unilateral Pricing Policies
(UPP). Utah consumers will
once again have the opportunity to shop around for the best
possible prices on their contact lenses. The law will go into
effect in May 2015.
Johnson & Johnson, Bausch & Lomb, Alcon, and
CooperVision, which together control more than 98% of the contact
lens market, began using UPP in 2013 to eliminate retailers'
ability to offer consumers lower prices and discounts for their
contact lenses. These UPP price fixing schemes are now under
investigation both by the Federal Trade Commission and by several
State Attorneys General. During the past two weeks, at least
15 consumer class action suits have also been filed against the
manufacturers on the basis that UPP has caused consumers to pay
substantially higher prices for their contact lenses with no
corresponding benefit.
"The Utah Legislature should be applauded for passing a
law that puts consumer interests before manufacturers' profits,"
said Brian Bethers, CEO of
1-800-CONTACTS. "We are hopeful that the various federal and
state government investigations, private lawsuits and legislative
initiatives around the country will put an end to this clearly
anticompetitive practice in our industry."
Nearly 40 million Americans use contact lenses, spending more
than $4.2 billion dollars every year.
Since the four major contact lens manufacturers instituted UPP,
contact lens wearers have seen some online prices increase as much
as 150%.
"Contact lens prescriptions are brand specific and do not allow
substitution. A doctor not only selects the contact lens
brand, but also sells the product. Contact lenses are
different from consumer products, like smartphones, where the
consumer can choose between brands. UPP price fixing is
clearly inappropriate in the contact lens industry," continued
Bethers.
Similar legislation to ban UPP has passed committees in
New York, Florida, Idaho, and Arizona. Such legislation
also has been introduced in several other states.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/utah-leads-nation-as-first-state-to-ban-upp-price-fixing-schemes-in-contact-lens-industry-300057302.html
SOURCE 1-800-CONTACTS