Judge upholds FTC complaint against 1-800 CONTACTS
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Chief administrative law judge D. Michael Chappell upheld a Federal Trade Commission complaint against 1-800 CONTACTS, “ruling that the agency has proved that the nation’s largest online retailer of contact lenses unlawfully orchestrated a web of anticompetitive agreements with rival online contact lens sellers,” according to announcement from the FTC.
“The administrative law judge’s initial decision upholding the Federal Trade Commission’s complaint against 1-800 CONTACTS’ online advertising practices is a victory for patients,” American Optometric Association President Christopher J. Quinn, OD, told Primary Care Optometry News.
The order from Chappell would bar 1-800 CONTACTS from agreeing with a marketer or seller of any contact lens product to restrict, prohibit, regulate or otherwise limit that seller’s participation in search advertising auctions and would also bar the company from instructing search engines to restrict or prohibit any seller’s use of any key word or to require any seller to use any negative key word.
The AOA said that the initial decision by Chapell stated that, “evidence in this case demonstrates that the advertising restraints imposed ... cause harm to consumers.”
“The judge’s decision makes it clear that full accountability, under the law, is coming for any company that withholds information from the public and engages in anticompetitive tactics that reduce competition or causes higher prices,” Quinn said. “The AOA will continue to stand up for our patients and advocate 24/7/365 against any abusive or unlawful practices we see connected to online contact lens retailing.”