FTC Bars Transitions Optical From Using Allegedly Anticompetitive Tactics

The Federal Trade Commission (FTC) announced today that it has reached a settlement with Transitions Optical that bars Transitions Optical from using allegedly anticompetitive practices to maintain its monopoly and increase prices on photochromic lenses.  According to the FTC, Transitions Optical illegally maintained its monopoly by engaging in exclusive dealing in the photochromic lens distribution chain. The FTC cited Transitions Optical’s refusal to deal with lens casters if they sold a competing photochromic lens.  Additionally, the FTC charged that Transitions used exclusive and other agreements with optical retail chains and wholesale optical labs that restricted their ability to sell competing lenses. According to the FTC, Transitions’ “exclusionary tactics locked out rivals from approximately 85 percent of the lens caster market, and potentially or completely locked out rivals from up to 40 percent or more of the retailer and wholesale lab market.”

In an accompanying statement, Richard Feinstein, director of the FTC’s Bureau of Competition, said, “Transitions crossed the line between aggressive competition and illegal exclusionary conduct when it used its monopoly power to strong-arm key distributors into exclusive agreements and unfairly box out rivals so they could not use distributors. “Its actions prevented others from competing on the merits, and consumers were forced to pay more for these lenses as a result. Such conduct runs afoul of the antitrust laws and is unacceptable.”

Transitions Optical’s response as well as other documents related to the FTC settlement can be found at www.TransitionsAgreement.com, a Web site set up by the company.

Source: Vision Monday

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About Arthur De Gennaro

My friends call me Art. Welcome to my blog. In this space you’ll find information and comments on the ophthalmology world, the optical industry, the hearing industry and medical practice management. My intent is to provide information you can use to improve your business and your own performance. Please visit often and feel free to join the discussions by leaving comments.

You can learn more about me and my consulting company, Arthur De Gennaro & Associates, LLC by visiting my web site www.adegennaro.com

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April 2010

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