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Utah Senate passes bill to block contact-lens manufacturers’ unilateral pricing policy

Utah State Senate (2015 Utah Legislature) · March 2, 2015
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Summary

The Senate passed SB169, a consumer-protection bill aimed at preventing contact-lens manufacturers from imposing unilateral pricing policies that, sponsors said, would raise costs for roughly 400,000 Utah wearers by about $22 million a year. Supporters called it a competition-restoring measure; opponents warned of possible legal questions and brand-protection arguments.

Senator Karen Henderson, sponsor of Senate Bill 169, told the Senate the measure was meant to protect Utah consumers from a pricing practice by major contact-lens manufacturers that sets price floors and limits retail competition. "There’s almost 400,000 contact-lens wearers in the state of Utah," Henderson said, and under the new pricing policies "their prices were are set to go up $22,000,000 a year."

Henderson said the bill does not change prescribing authority or clinical oversight: "Nothing in this bill changes that at all. The only thing this bill does is simply ban price fixing," she said. Supporters argued the policy had the practical effect of removing competition by allowing…

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