Health

U.S. Court Halts Contentious Law on Contact Lens Price-Fixing

Published

10 years ago

May 15, 2015

A contact lens is shown in front of a 1-800-Contacts shipping box Wednesday, May 13, 2015, in Salt Lake City. A law banning price-fixing for contact lenses that took effect this week in Utah is a setback for the nation’s largest manufacturers that could have ripple effects across the country amid an increasingly bitter fight with discount retailers. (AP Photo/Rick Bowmer)

Lindsay Whitehurst, ASSOCIATED PRESS

SALT LAKE CITY (AP) — A federal appeals court has halted a new Utah law banning price-fixing for contact lenses that could have wide-ranging implications for the industry amid a fight between manufacturers and discount retailers.

Lens maker Alcon Laboratories cheered the order Thursday. Along with Johnson & Johnson and Bausch & Lomb, the company says the law is an unconstitutional overreach written to benefit Utah-based online discount retailer 1-800 Contacts.

The measure halted by the appeals court would allow 1-800 Contacts, one of the nation’s biggest lens suppliers, to disregard minimum prices set by the manufacturers and sell discount lenses across state lines, according to Steve DelBianco, executive director of the trade group NetChoice.

That would be good for customers because they’d be paying less for their contacts, he says. But the manufacturers argue setting minimum prices protects eye doctors from being undercut.

At stake is control of a roughly $4 billion market with some 38 million American customers.

Many contact lens sales come from eye doctors. But discount retailers have been growing in recent years, and 1-800 Contacts has captured about 10 percent of the national market, according to court papers.

The order issued late Wednesday from the 10th U.S. Circuit Court of Appeals in Denver puts the Utah law on hold as a legal challenge plays out. It reverses a lower court ruling from U.S. District Judge Dee Benson, who found the law is a legal antitrust measure and allowed it to take effect this week.

Utah’s state attorneys declined to comment.

The law targets a pricing program that the manufacturers started using about two years ago. If retailers sell lenses cheaper than the minimum prices, the manufacturers that dominate the market pull their products.

Republican state Sen. Deidre Henderson, who sponsored the measure, has called the pricing minimums predatory and anticompetitive.

Discount giant Costco says the rules forced it to raise prices by more than 20 percent on some brands. The popular Acuvue Oasys brand increased from about $52 for a 12-pack to about $68 last year, according to court papers.

The minimum price rules also have drawn ire elsewhere, sparking 40 class-action lawsuits across the country and scrutiny from Congress since the manufacturers started setting them about two years ago, according to Benson’s ruling. Nine states have considered legislation similar to that passed in Utah.

Henderson said the measure was written to bolster competition rather than help 1-800 Contacts, but he has been vague on whether it will allow Utah-based companies like 1-800 Contacts to sell at discounted rates to customers outside the state. The manufacturers say that would violate interstate commerce regulations.

A constitutional law expert said the law doesn’t appear to violate those rules because it doesn’t give perks to a local company or clash with laws in other states.

But University of Michigan law professor Richard Primus says a provision that allows Utah’s attorney general to sue manufacturers who withhold their product from discount sellers could be on shakier legal ground.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

###

Oakland Post

Posts by Oakland Post

Activism

LIVE! — TOWN HALL ON RACISM AND ITS IMPACT — THURS. 11.14.24 5PM PST

Join us for a LIVE Virtual Town Hall on the Impact of Racism hosted by Post News Group Journalist Carla Thomas and featuring Oakland, CA NAACP President Cynthia Adams & other Special Guests.
Thursday, November 14, 2024, 5 p.m. – 6:30 p.m. PST

Published

6 days ago

November 12, 2024

Oakland Post

Discussion Topics:
• Since the pandemic, what battles have the NAACP fought nationally, and how have they impacted us locally?
• What trends are you seeing concerning Racism? Is it more covert or overt?
• What are the top 5 issues resulting from racism in our communities?
• How do racial and other types of discrimination impact local communities?
• What are the most effective ways our community can combat racism and hate?

Your questions and comments will be shared LIVE with the moderators and viewers during the broadcast.

STREAMED LIVE!
FACEBOOK: facebook.com/PostNewsGroup
YOUTUBE: youtube.com/blackpressusatv
X: twitter.com/blackpressusa

Oakland Post

Posts by Oakland Post

Activism

NAACP California-Hawaii State Convention Highlights Black Voter Engagement, and More

A Friday panel featuring NAACP Chairman Leon W. Russell and Regina Wilson, Executive Director of California Black Media, examined Project 2025, an initiative perceived as a potential threat to civil rights, healthcare access, and environmental protection. This session emphasized Project 2025’s projected impact on Black communities, noting that policies within the initiative could diminish gains in civil and environmental rights over decades. Russell and Wilson highlighted the need for vigilant monitoring and community mobilization to address these challenges.

Published

2 weeks ago

November 4, 2024

Oakland Post

NAACP State Conference President Rick Callender (right) engages in a discussion on voter engagement and community advocacy with NAACP President and CEO Derrick Johnson during the 37th NAACP California-Hawaii State Convention in Los Angeles. Photo by Rich Woods.

By Bo Tefu, California Black Media

The 37th NAACP California-Hawaii State Convention concluded on Sunday, Oct 27, following four days of discussions and workshops at the Los Angeles Airport Marriott. Bringing together civil rights leaders, policymakers, and advocates from California and Hawaii, the convention operated under the theme “All In.” The participants discussed critical issues impacting Black communities, including criminal justice reform, health equity, economic empowerment, education, environmental justice, and voting rights.

On Saturday, the President’s Fireside Chat brought together NAACP President Derrick Johnson and CA/HI State Conference President Rick Callender, who discussed the urgency of voter engagement and community advocacy.

Guest speakers included Congresswoman Maxine Waters (D-CA-43), who spoke at the Women in NAACP (WIN) Labor Luncheon about the intersection of labor rights and civil rights. California State Superintendent Tony Thurmond delivered remarks at the Leadership Dinner on education equity, focusing on policies to ensure all students have access to high-quality education.

Honors were given to longtime social justice advocate and former Assemblymember Mike Davis for his work in community activism. At the same time, actor and activist Danny Glover and the Rev. Dr. Amos C. Brown received the 2024 Legacy Hall of Fame Awards, recognizing their lifelong commitments to advancing civil rights.

The convention also offered practical workshops, including “What’s On Your Ballot?,” where coalition leaders provided analyses of California propositions, explaining their potential impacts on community rights and resources. The Voter Turnout Workshop provided background and encouraged participants to promote voter turnout through community-centered outreach strategies.

Sunday’s events closed with a Prayer and Memorial Breakfast honoring the contributions of past and current civil rights leaders.

Oakland Post

Posts by Oakland Post

Activism

Atty Gen Bonta: U.S. Law Mandating Emergency Care to All Patients Faces Threats

The attorney general highlighted that EMTALA is vital for ensuring that no individual is turned away from emergency services based on financial status or insurance coverage. Bonta stated that the law has been a cornerstone of emergency healthcare for decades, providing peace of mind to millions of Americans who might otherwise hesitate to seek urgent medical attention due to cost concerns.

Published

2 weeks ago

November 3, 2024

Oakland Post

iStock

By Bo Tefu, California Black Media

California Attorney General Rob Bonta emphasized the critical need to protect the Emergency Medical Treatment and Labor Act (EMTALA), mandating that hospitals provide emergency care to all patients regardless of their ability to pay.

In a recent statement, Bonta highlighted the potential threats to this essential legislation amid ongoing discussions about healthcare accessibility in the U.S.

“EMTALA ensures that no one is denied access to emergency medical care, including abortion care, and this federal law is more imperative than ever following the overturn of Roe v. Wade,” said Bonta.

This decision to support the federal government’s case comes at a time when many healthcare providers are facing pressure from rising costs and legislative changes that could undermine existing protections. Bonta called on lawmakers to reinforce EMTALA’s provisions and to combat any efforts aimed at weakening the act, asserting that equitable access to emergency care is a fundamental right.

He urged state and federal governments to ensure that all Americans, particularly marginalized communities, have the necessary access to emergency services without fear of financial repercussions. The brief indicates the coalition’s commitment to healthcare equity, emphasizing that maintaining strong protections under EMTALA is crucial for safeguarding public health.

As discussions around healthcare policy continue, Bonta remains steadfast in promoting initiatives that protect emergency care access, asserting that everyone deserves timely and appropriate medical treatment in emergencies. His efforts align with ongoing legal and advocacy battles to preserve the rights established by EMTALA in the face of evolving healthcare challenges.