Johnson&Johnson

Johnson&Johnson amongst contact lens manufacturers under AOA suspicion of price-fix charges

Johnson & Johnson is actually one of three companies that were charged in a conspiracy with the American Optometric Association (AOA). Lawyers from 32 states accused Johnson & Johnson, Bausch & Lomb, and CIBA Vision Corp. 7 of working with the AOA to keep contact lens prices high.

The charges against Johnson&Johnson and others accused the companies of following suggestions of the AOA to refuse or dissuade patients from getting their prescriptions. Johnson & Johnson and their cohorts hoped to stop people from purchasing their contacts from other providers.

Accusations against Johnson&Johnson and others also focused on the goal of not providing lenses to mail order or discount marketers. By limiting distribution, Johnson & Johnson and the other companies allegedly hoped to keep the prices of their own lenses higher.

Johnson & Johnson and the other two companies settled, allowing people who had purchased contacts from them in the past patients to claim rebates and discounts on future orders. Johnson & Johnson and the others also began to supply Internet and mail order retailers. It is estimated that this may have caused the prices of Johnson & Johnson and the other brands to drop as much as 20%. This is obviously the outcome that Johnson & Johnson and the other companies were trying to avoid, but were eventually forced to accept due to the lawsuit.

While people may be upset by the efforts of Johnson & Johnson and others to keep prices inflated, their argument on the importance of proper prescriptions and distribution of the correct lenses is still well worth considering. Regular visits to the eye doctor and a current prescription should be vital whether you are purchasing Johnson&Johnson products or any others through a discount provider.

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Sunday, August 22, 2004 14:04
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