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Utah bans UPPs for contact lenses
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The Contact Lens Consumer Protection Act was signed into law last week in Utah, making the state the first in the U.S. to ban unilateral pricing policies for contact lenses, according to a press release issued by 1-800-CONTACTS.
As detailed in the release, the new law will go into effect this May.
"The Utah legislature should be applauded for passing a law that puts consumer interests before manufacturers' profits," Brian Bethers, CEO of 1-800-CONTACTS, said in the release. "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."
Fifteen consumer class action suits have been filed against contact lens manufacturers regarding their unilateral pricing policies (UPPs), according to the release. Additionally, UPP strategies are currently under investigation by several state attorneys general and the Federal Trade Commission.
“Contact lenses are different from consumer products, like smartphones, where the consumer can choose between brands,” Bethers said in the release. “UPP price fixing is clearly inappropriate in the contact lens industry."
According to the release, legislation similar to the law passed in Utah has been introduced in other states.