1-800-CONTACTS Class Action

samantha severyn

A class action has been filed against un-fair and monopolistic business practices by the contact lens company 1-800-CONTACTS, by a couple of consumers in the state of California. This comes on the heels of a similar suit filed in August 2016 by The Federal Trade Commission (FTC) alleging the same, specifically, “harms competition in on-line search advertising auctions and restricts truthful advertising to consumers.” 

According to the FTCs federal lawsuit,” 1-800 Contacts entered into bidding agreements with at least 14 competing online contact lens retailers that eliminate competition in auctions to place advertisements on the search results page generated by online search engines such as Google and Bing. The complaint alleges that these bidding agreements unreasonably restrain price competition in internet search auctions, and restrict truthful and non-misleading advertising to consumers, constituting an unfair method of competition in violation of federal law.”

The similar suit filed in U.S. District Court for the Southern District of California by J. Thompson and William Duncanson alleges basically the same thing, but from a personal consumer angle.