Judge rules in favour of FTC in 1-800 contacts case

The ruling marked the end of a more than 12 month legal battle, after the FTC alleged in August last year that 1-800 Contacts had unlawfully orchestrated a web of anticompetitive agreents with 14 rival online contact lens sellers.The agreents saw the retailers agree to limit advertising to consumers who searched online for wording that included the 1-800 Contacts name.{{quote-A:R-W:450-Q: The deals had suppressed competition in certain online search advertising auctions, and also restricted truthful and non-misleading internet advertising. }}In upholding the complaint, the judge agreed with the FTC’s assessment that the deals had suppressed competition in certain online search advertising auctions, and also restricted truthful and non-misleading internet advertising. This had resulted in some consumers paying higher retail prices for contact lenses.Following the ruling, 1-800 Contacts’ general counsel Ms Cindy Williams said the company was disappointed and had already appealed the decision.“Nothing in the initial ruling changes our view that the settlent agreents are lawful and procompetitive and that the company will ultimately prevail,” she said.“Numerous court decisions involving similar issues are in direct conflict with this initial ruling and we expect any court that examines the facts will agree with our position.”