After a severe price cut from 1-800-Contacts in the Utah market on contact lenses, the other contact lenses go to the 10th Circuit Court and appealed to limit the minimum rate of selling the lenses on Thursday.
Reportedly, in the recent past, one of the leading company 1-800 Contacts has decreased the rate of the lenses to 15$ and from there confusion started.
Top contact lens companies like Alcon Laboratories, Johnson & Johnson and many other appealed at the Court for the price fixation in the market, where the defending lawyer challenged that this practice will lead to cases like minimum wages and like those.
The court, however, advised the companies to go for other markets than Utah and get the lens sold there. Earlier the contact lens companies tried to fix the minimum rate to protect the doctor’s rate from the discount providers, but the price reduction from 1-800 contacts have been a nightmare for them.
They have to say that the excessive price reduction is going to affect the other markets too. The court, however, has not decided yet on any side and has declared to hold the case until next date.
Scrutiny of the pricing is continuing till now, and the top CEOs have to say that the Congress is into the action for that. They reported that the discounters have taken a big part of the market in the past years, and they need protection on that account from the court.