Unilateral pricing! Yay!

[erichwmack]

I am a huge fan of Vistakon unilateral pricing for so many reasons. I think its the best thing to happen to the industry in a long time! I know that 1800 and some others caused the Feds to open up an anti-trust hearing against Vistakon and unilateral pricing. Has anyone heard of any information regarding the hearing?

[Hayde]

This is good news, indeed!
http://www.reuters.com/article/2014/...0Q536M20140730
http://consumerist.com/2014/07/31/co...-you-pay-more/
http://www.reuters.com/article/2014/...0FY29Z20140729

I'd be interested in the Supreme Court case details that provides any sanction for this tact.

Still, at face value, it would seem CL manufacturers have figured out they actually need doctors after all.

It's gratifying to see Vistakon take this turn when they've had so much to answer for. Competitive interests between docs and online aside, the fact they're addressing the notorious compliance issue of their "bi-weekly" (wink-wink) product with 12-pack boxes is a step away from working-the-angle and towards conscientious patient care.

Thanks for the post, Eric

[drk]

This guy: http://en.wikipedia.org/wiki/Mike_Lee_(U.S._politician) from Utah (hmm...where have I heard of that State before?) was on the Senate panel because he's ranking member on this: http://en.wikipedia.org/wiki/United_...onsumer_Rights

IT HAS ABSOLUTELY NOTHING TO DO WITH DRAPER, UTAH DARLINGS 1-800-CONTACTS! (Yeah, right.)

I am in no way a qualified attorney, but it seems to me that if a manufacturer wants to set a retail price for a product, that it is in no way anti-competitive.

Now, if all CL companies agreed together to do it, together, then there'd be a problem.

But other manufacturers, even in our industry, set retail minimums.

Hooray for J&J Vision.

[erichwmack]

Yes hooray for sure! However, to your point that if all of the CL companies do it then we have a problem; B&L and Alcon have also implemented the price floors for at least some of their CL's. So I maybe this will be viewed negatviely by the committee. The UT congressman and 1800 connection could be troublesome.

[TLG]

Has anyone checked to see if this new policy has affected the price of Vistakon lenses with Coastillor, 1800 etc?

[m0002a]

I am in no way a qualified attorney, but it seems to me that if a manufacturer wants to set a retail price for a product, that it is in no way anti-competitive.

According to this article, in 2007 the US Supreme Court struck down (by a 5-4 vote) an antitrust rule nearly a century old, ruling that it is no longer automatically unlawful for manufacturers and distributors to agree on setting minimum retail prices. Prior to that, resale price maintenance agreements were an automatic, or per se, violation of the Sherman Antitrust Act.
http://www.nytimes.com/2007/06/29/bu...ourt.html?_r=0

I am not an expert on this, but it does appear that a retailer can sell an item for more than the minimum retail price, so it may not be the case that all retailers sell for the same price, even if the manufacturer/distributor would prefer that.

[EyeManDan]

some electronic companies all ready do this, so you can get their product on line or in a box store for the same price.

[drk]

Thanks, guys. Good information, and I have heard the same.

Sorrrryyyyy Costco, Walmart, 1-800, Coastal, hehehehehehehe.

[Den]

Sorry this cannot be brought to life in our country.
We have the MRP on lenses, but nobody's watching stictly about their keeping up. many online stores don't worry about that and sell as low on some posotions, as i buy them at official dealer...
stupid situation. the dealer knows about that, and doesn't care at all. furthermore he has his own (though it's not marked officially anywhere) on-line shop with extremly low prices...

[Uilleann]

This guy: http://en.wikipedia.org/wiki/Mike_Lee_(U.S._politician) from Utah (hmm...where have I heard of that State before?) was on the Senate panel because he's ranking member on this: http://en.wikipedia.org/wiki/United_...onsumer_Rights

IT HAS ABSOLUTELY NOTHING TO DO WITH DRAPER, UTAH DARLINGS 1-800-CONTACTS! (Yeah, right.)

I am in no way a qualified attorney, but it seems to me that if a manufacturer wants to set a retail price for a product, that it is in no way anti-competitive.

Now, if all CL companies agreed together to do it, together, then there'd be a problem.

But other manufacturers, even in our industry, set retail minimums.

Hooray for J&J Vision.

I would like to take this opportunity to apologize for this waste of space. I would say he's a disgrace to Utah politics, but sadly, he fits in perfectly here. (No, never voted for him or his ilk.) And yes, it's no secret that there are some VERY stinky connections between the lobbyists and the silly persons writing the laws in the state. In this case, it is yet another shining example of the power of special interest money and power influencing what we do in a negative way.

[Gizzo]

Thanks, guys. Good information, and I have heard the same.

Sorrrryyyyy Costco, Walmart, 1-800, Coastal, hehehehehehehe.

My Vist. rep just told me and also let on they had "busted" a local Costco. Hmmmm; We'll see...?

[ml43]

This is somewhat the norm, in other industries.

I wonder if they can enforce the actual sale price though(given insurance is not used).

Most industries enforce a minimum advertised retail price(MAP Pricing).
But you can sell it for whatever you want, as long as you don't advertise anything lower than the MAP price(discounts included).

[Pdarnall]

My Vist. rep just told me and also let on they had "busted" a local Costco. Hmmmm; We'll see...?

Failed.... UPP is a non-starter.

[ml43]

Failed.... UPP is a non-starter.

Yup, costco prices go back to where they were, effective today