Utah Leads Nation as First State to Ban "UPP" Price Fixing Schemes in Contact Lens Industry

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.

SOURCE 1-800-CONTACTS