FTC Sues 1-800 Contacts Over Online Search Advertising

The Federal Trade Commission building is seen in Washington
The Federal Trade Commission building is seen in Washington on March 4, 2012. REUTERS/Gary Cameron (UNITED STATES) - RTR2YUEL
Photograph by Gary Cameron — Reuters

U.S. antitrust enforcers filed a complaint against 1-800 Contacts on Monday, alleging that the online contact lens seller reached agreements with 14 rivals to hamper consumers seeking to compare prices.

The Federal Trade Commission alleged in an administrative complaint that 1-800 Contacts had reached agreements with 14 other online contact lens retailers that they would not advertise to customers who had searched online for 1-800 Contacts.

1-800 Contacts agreed, for its part, to not advertise to customers who searched for its rivals, whose names were redacted from the complaint.

The retailer is the world’s largest contact lens store, according to its website, which touted total sales to more than 8 million customers.

“1-800 Contacts has aggressively policed the bidding agreements, complaining to competitors when the company has suspected a violation, threatening further litigation, and demanding compliance,” the complaint said.

The FTC action was not filed in district court but to its own administrative court.

In a twist, the company had been pressing the FTC to enforce rules that require optometrists to give patients their prescriptions so they can compare prices.

1-800 Contacts did not immediately respond to requests for comment.

Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.

Read More

Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward