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Alcon ends UPP after Utah law is upheld
Alcon, a division of Novartis, announced that it is discontinuing the unilateral pricing policy for its contact lenses in light of a Utah district court’s decision to uphold the Contact Lens Consumer Protection Act.
In 2015, Utah passed the act, with the intent to prevent contact lens manufacturers “from fixing retail contact lens prices and from discriminating against contact lens retailers selling lenses below the [unilateral pricing policies’] UPPs’ minimum prices,” according to the U.S. Court of Appeals for the Tenth Circuit. The manufacturers sought a preliminary injunction, arguing that the statute violates the Commerce Clause.
Circuit judge Gregory A. Phillips stated in the Dec. 19 filing from the U.S. Court of Appeals, “We affirm the district court’s denial of a preliminary injunction.”
Alcon said in a media alert that it is “extremely disappointed in the court’s decision to allow the Utah law to remain in effect, as it believes the law violates the Commerce Clause of the U.S. Constitution.”
The company said that a continued challenge to the law along with different policies for retailers in other states “could distract from efforts to serve customers to the best of its ability. Accordingly, Alcon is ending its UPP effective immediately. Alcon remains committed to supporting customers through its differentiated portfolio and innovative partnerships.”