WASHINGTON, D.C. — The Federal Trade Commission and attorneys general from Utah and Nevada have sued Lens.com Inc., alleging the online contact lens retailer advertised artificially low prices and then imposed mandatory “Taxes & fees” charges that routinely doubled consumers’ costs.
The complaint, filed in the U.S. District Court for the District of Nevada, also names Lens.com owner Cary Samourkachian and affiliated company Speed Commerce LLC.
Regulators allege the pricing practices cost consumers hundreds of millions of dollars by obscuring the total price of contact lenses until late in the checkout process.
According to the complaint, Lens.com promotes low prices in sponsored Google ads and on www.lens.com but adds a substantial mandatory “Taxes & fees” charge at checkout.
The FTC and state attorneys general allege the fee is positioned below the visible portion of the checkout screen while consumers are prompted to click a prominent “Continue” button. Customers who proceed without scrolling may never see the line item before advancing through the purchase process, according to the complaint.
Regulators also challenge the description of the charge itself. The lawsuit alleges the “Taxes & fees” label can suggest that state sales taxes account for part of the amount even when contact lenses are exempt from sales tax or the customer lives in a state without a sales tax.
“Lens.com advertised one price for contact lenses but charged a substantially higher price at checkout, deceiving consumers about the cost of this healthcare necessity,” FTC Bureau of Consumer Protection Director Christopher Mufarrige said.
The complaint also targets Lens.com’s AutoRefill subscription program.
Regulators allege the company used the same advertised prices to encourage consumers to enroll in recurring contact lens shipments without clearly disclosing the mandatory fee before collecting billing information.
Lens.com also allegedly failed to clearly disclose how customers could cancel AutoRefill or the deadline for canceling before being charged for another shipment.
The FTC, Utah and Nevada contend the practices make it more difficult for consumers to determine the actual cost of a purchase and compare Lens.com’s prices with competing retailers.
The lawsuit alleges violations of the FTC Act, the Restore Online Shoppers’ Confidence Act, the Gramm-Leach-Bliley Act, Utah’s Consumer Sales Practices Act and Automatic Renewal Contracts Act, and Nevada’s Deceptive Trade Practices Act.
The FTC voted 2-0 to authorize the complaint.
The allegations have not been adjudicated. The case will be decided by the federal court.
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