SALT LAKE CITY—On Friday, June 12, 2015, a federal appeals court allowed a Utah law that prevents contact lens manufacturers from establishing minimum prices on certain products to go into effect.

Utah’s Contact Lens Consumer Protection Act  was originally scheduled to go into effect in Utah on May 12, 2015, but the law had been blocked since May 14, 2015, by an injunction by the 10th U.S. Circuit Court of Appeals in Denver in response to a motion filed by contact lens manufacturers Alcon, Johnson & Johnson Vision Care and Bausch + Lomb. However, the court vacated that injunction on Friday, June 12, 2015, allowing the new law to go into effect while the appeals process continues, stating that the three contact lens manufacturers “have not satisfied the requirements necessary for an injunction.”

With the injunction lifted, the law in Utah allows contact lens distributors in that state to ignore contact lens manufacturers’ unilateral pricing policies that establish minimum pricing requirements on certain contact lens brands while the court continues considering the appeals filed by Alcon, J&J and B+L, which argue that the Utah law violates the Commerce Clause of the U.S. Constitution and opposes U.S. Supreme Court precedent.

While Utah is the home state of discount contact lens distributor 1-800 CONTACTS, state officials deny the law was written to benefit the company and have been vague on whether the law would allow Utah-based sellers to charge lower prices to customers outside the state.

While there is no scheduled upcoming court hearing date, the contact lens manufacturers (the plaintiffs in the appeal) will need to file their brief on the appeal by June 26, 2015. The follow-up response from the Utah Attorney General is then due July 10, 2015, with an optional reply brief from the plaintiffs due July 17, 2015.

There are three possible outcomes at that time, according to a spokesperson representing the Utah Attorney General’s office. “The 10th Circuit could decide the matter on the briefs. The 10th Circuit could schedule a special oral argument, which is out of the ordinary,” the Utah Attorney General’s spokesperson told VMail. “Or the court could schedule oral arguments during the normal course as early as the September session.”

In a statement provided to VMail, 1-800 CONTACTS said, “We are pleased with the court's ruling. Not only is the court decision well-reasoned and consistent with the law; it is another victory in the ongoing battle to lower prices to consumers of contact lenses. We look forward to offering customers lower prices."

In addition to supporting the Utah legislation, 1-800 CONTACTS also backed legislation in 13 other states—Arizona, California, Florida, Idaho, Illinois, Louisiana, Minnesota, Mississippi, New York, Oregon, Rhode Island, Tennessee, Utah and Washington. While the New York bill has moved from the Codes Committee and is sitting in the Rules Committee of the state assembly, “We do not anticipate it moving to the Assembly floor before the legislature adjourns Wednesday [today], but it’s possible,” a person monitoring the legislation for the American Optometric Association told VMail. “None of the other bills are moving at this time. We are concerned that the ruling may permit some movement with a few of the bills still pending, but we don’t have any evidence of that yet.”

In opposition to Friday’s decision lifting the injunction on Utah’s new law, Alcon said in a statement provided to VMail, “We are extremely disappointed in the court’s decision to allow the Utah law to go into effect as we believe it violates the Commerce Clause of the U.S. Constitution. Alcon will continue the appeals process, but we will modify our unilateral pricing policy to avoid any potential conflict with the new law.”

Similarly opposing Utah’s new law and the appeals court’s decision to lift the injunction, J&J said in a statement provided to VMail, “We are moving ahead on our appeal of the Utah state law, which we believe violates the Commerce Clause of the Constitution and is at odds with Supreme Court precedent. We stand behind our lawful business policy that makes pricing on Acuvue Brand products simpler and more transparent and allows consumers to make purchasing decisions based on quality, clinical need and cost. This policy gets rid of complicated and seldom-redeemed rebates and has resulted in lower prices for 65 percent of Acuvue Brand wearers. We remain committed to providing innovative and accessible eyecare options to patients.”

B+L, in a statement provided to VMail, said, “We are disappointed that the 10th Circuit Court of Appeals has lifted the injunction and disagree with the ruling allowing the legislation to go into effect pending our challenge to the legality of Utah's law. Bausch + Lomb’s policy is consumer oriented and designed to enhance the investment and innovation of the contact lens industry in consumers’ eye health, and the Supreme Court has recently recognized the benefits of similar policies. We believe that Utah’s law is not consistent with these principles and interferes with the contact lens market in a manner that violates the Commerce Clause of the Constitution and is not in the best interest of contact lens wearers. Nevertheless, we will take appropriate action to comply with the Utah law while the company pursues further legal action.”