In early March, Transitions Optical made a settlement with the Federal Trade Commission (FTC) to stop using allegedly anticompetitive practices to maintain a monopoly and increase prices. The FTC charged that Transitions illegally maintained a monopoly by engaging in exclusive dealing at nearly every level of the photochromic lens distribution chain.

According to the FTC, Transitions refused to deal with manufacturers of corrective lenses if they sold a competing photochromic lens. The FTC also charged that Transitions used exclusive agreements with optical retail chains and wholesale optical labs that restricted their ability to sell competing lenses. “Transitions crossed the line between aggressive competition and illegal exclusionary conduct,” said Richard Feinstein, Director of the FTC’s Bureau of Competition. “It used its monopoly power to strong-arm key distributors into exclusive agreements and unfairly box out rivals so they could not use these distributors ... Consumers were forced to pay more for these lenses as a result.” Transitions agreed to a range of restrictions, including an agreement to stop all exclusive dealing practices that pose a threat to competition. In response to the FTC settlement, Transitions issued a statement in which the company denied any wrongdoing: “We believe our business practices have been lawful, fair, pro-competition and pro-consumer. At the same time, we understand that the FTC wishes to foster greater competition and transparency in the eyewear industry, and we have taken those concerns seriously, as reflected in the provisions of the consent agreement.”