U.S. government fines Hubble Contacts $3.5 million for violating contact lens laws
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The Department of Justice and Federal Trade Commission announced that the government will collect $1.5 million in civil penalties and $2 million in consumer redress from the online contact lens company, Vision Path Inc., doing business as Hubble Contacts.
These fines are part of a settlement to resolve allegations that Hubble violated the Fairness to Contact Lens Consumers Act and the Federal Trade Commission’s (FTC’s) Contact Lens Rule, according to a press release from the Department of Justice (DoJ).
The government alleged in the complaint filed in the U.S. District Court for the District of Columbia that Hubble sold contact lenses online without verifying subscribers’ contact lens prescriptions and substituted Hubble’s own brand of contacts for those prescribed by the eye care providers. In addition, the FTC and DoJ said the company violated the laws by procuring what it falsely portrayed as independent consumer reviews of its products and services.
The FTC, in its own press release, said this penalty is, “the largest amount ever for a matter involving violations of the Contact Lens Rule.”
The court order requires Hubble to, “refrain from altering prescriptions to change the brand prescribed, to verify the prescription for contact lens orders submitted without a written prescription, to cease other deceptive practices and to satisfy ongoing recordkeeping, certification and compliance obligations,” according to the DoJ release.
“The Department of Justice will not tolerate the violation of laws intended to ensure that consumers receive the products prescribed for them,” acting assistant attorney general Brian M. Boynton, of the Justice Department’s Civil Division, said in the release. “The department is committed to protecting consumers from companies that engage in deceptive practices.”
“Hubble’s business model boosted its bottom line but created needless risk for its customers’ eye health,” director Samuel Levine, FTC Bureau of Consumer Protection, said in the FTC release. “Today’s action makes clear that firms will pay a price for deceiving their customers, flouting the Contact Lens Rule and using misleading reviews.”
“The findings by the Federal Trade Commission on Hubble’s dangerous and reckless business practices are deeply troubling,” David Cockrell, OD, chairman of the Health Care Alliance for Patient Safety, said in a press release from that group. “This case makes it clear that immediate congressional action is needed in order fix the broken passive verification process.”
“The Federal government’s investigation and enforcement action against Hubble Contacts is absolutely warranted and reinforces the concerns the American Optometric Association and doctors of optometry have consistently asserted with federal agencies, legislators and the media since the company’s inception,” AOA President Robert C. Layman, OD, said in a statement provided to Healio. “On behalf of doctors of optometry and our patients, the AOA will continue to work with government officials to hold illegal medical device sellers fully accountable.”
Vision Path CEO Steven Druckman said in a press release from the company, “The FTC’s allegations relate to a period when the company was just starting up, and all requirements in the order were addressed along ago through improvements to our systems and internal processes.
"We disagree with many of the FTC's claims, including the FTC's characterization of the Hubble team's intentions, but we believe that this settlement is the best way for Hubble to move forward so we can focus on executing our strategy to grow and evolve the company and expand on our value proposition," Druckman added.
References:
- Hubble Contacts settles with U.S. Federal Trade Commission (FTC). https://www.prnewswire.com/news-releases/hubble-contacts-settles-with-us-federal-trade-commission-ftc-301470980.html. Published Jan. 28, 2022. Accessed Feb. 1, 2022.
- Online contact lens retailer fined millions for dangerous business practices, demonstrating need for Congressional action. https://www.patientsafetytoday.com/online_contact_lens_retailer_fined_millions_for_dangerous_business_practices_demonstrating_need_for_congressional_action. Published Jan. 31, 2022. Accessed Feb. 1, 2022.
- Vision Path Inc., online seller of Hubble lenses, settles charges it violated the Contact Lens Rule and FTC act to boost sales. https://www.ftc.gov/news-events/press-releases/2022/01/vision-path-inc-online-seller-hubble-lenses-settles-charges-it. Published Jan. 28, 2022. Accessed Feb. 1, 2022.
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