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Release date 07/30/2014
WASHINGTON, DC ─ At a Senate Judiciary subcommittee hearing today, Consumers Union, the policy and advocacy division of Consumer Reports, will testify on competition in the contact lens industry and how new pricing methods could help to boost manufacturers and doctors’ bottom lines while forcing consumers to pay more.
Major contact lens manufacturers have recently begun shifting to a new pricing policy to dictate that their lenses have to be sold by retailers and doctors at or above a set price, prohibiting anyone from offering discounts. Ultimately, consumers lose the ability to shop around for a better price.
George Slover, senior policy counsel for Consumers Union, will testify at the hearing to call attention to questionable and anti-consumer practices in the industry. A full copy of his testimony is available here.
Slover said, “This type of rigid pricing hurts consumers who are looking to get a better deal and it hurts discount retailers who want to give consumers a break. Ultimately, consumers are denied more affordable alternatives and retailers are denied the right to reach cost-conscious consumers with a better deal. While previous laws were passed to remove the chains that once tied eye care services to lens sales, unilateral pricing is beginning to replace those chains with a silken cord that has a similar binding effect.”
Consumers Union worked to help pass the Fairness to Contact Lens Consumers Act of 2003 that enabled consumers to shop around for contact lenses by requiring eye doctors to give patients a copy of the prescription free of charge. The testimony notes that while the 2003 law gave consumers the ability to shop for a better price outside their doctor, the new industry pricing standards are once again effectively tying eye care services to the sale of contact lenses by removing the benefit of comparison shopping.
“In a truly competitive market, if one manufacturer tries this kind of rigid pricing, another would step in and take advantage, appealing to cost-conscious consumers with a lower price. Yet that kind of competition could now be absent in the contact lens industry. We hope antitrust enforcers will take a close look at these anti-consumer industry practices,” said Slover.
The Antitrust, Competition and Consumer Rights Subcommittee hearing, entitled Pricing Policies and Competition in the Contact Lens Industry: Is What You See What You Get?, is scheduled for 2:15 PM. For more information, please visit www.judiciary.senate.gov.
Media Contact:
Kara Kelber, Consumers Union, 202.462.6262 or kkelber@consumer.org
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2014 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2014 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.