A Federal Trade Commission judge ruled that 1-800 Contacts unlawfully constructed anticompetitive agreements with rival online contact lens vendors.
The judge found 1-800 Contacts guilty of restricting the sale of competing advertisements in response to searches for 1-800 Contacts trademarks on the search engines Google and Bing.
"Evidence in this case demonstrates that the advertising restraints imposed by the challenged agreements cause harm to consumers and competition in the market for the sale of contact lenses online," Chief Administrative Law Judge D. Michael Chappell wrote in his decision. "This is sufficient to establish complaint counsel's prima facie case that the agreements are anticompetitive."
Mr. Chappell also barred 1-800 Contacts from agreeing with rival vendors to restrict their participation in search engine auctions.