Federal court sides with three of the country's largest contact lens manufacturers as they bid to halt Utah banning price fixing and keep prices low

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A federal appeals court ruled in favor of a Utah law banning price-fixing on contact lenses
The legislation would make it difficult for retailers to offer discounted prices on contact lenses
Supporters of the law fear banning high prices would help customers but enhance competition
Opponents like The ruling, that would allow retailers to lower contact prices, could have many affects on the $4 billion industry
Opponents including Alcon Laboratories, Johnson & Johnson and Bausch & Lomb say lower prices are legal

Published: 22:23 EST, 12 June 2015 | Updated: 01:58 EST, 13 June 2015

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A federal appeals court ruling has halted a new Utah law banning price-fixing for contact lenses, clearing the way for the hotly disputed legislation that will have wide-ranging effects on the $4 billion industry.

The decision handed down from the 10th Circuit Court of Appeals in Denver on Friday comes after three of the nation's largest contact lens manufacturers sued to halt the hotly contested law.

Supporters, including Utah-based discount seller 1-800 Contacts, say the newly enacted legislation bans price fixing for contact lenses.

The legislation would ban price fixing, making it difficult for retailers to lower prices for contact lenses. However, Utah's attorney general said the law is an antitrust measure to enhance the competition and help customers.

But opponents, including Alcon Laboratories, Johnson & Johnson and Bausch & Lomb, say it's a brazen overreach that allows discount sellers to violate interstate commerce regulations and skirt industry price standards.

Law: A federal appeals court will allow a hotly contested Utah law banning price fixing for contact lenses to go into effect

Utah's attorney general has also said the companies are wrongly driving up prices.

Attorney General Sean Reyes' office didn't have a comment on the decision Friday.

The ruling allows the law to go into effect while a legal battle over the measure works its way through the courts.

The appeals court did agree to fast-track the case and new briefs are due in the case later this month.

Donna Lorenson, a spokeswoman for Alcon, says the company is 'extremely disappointed' and maintains the law violates interstate commerce rules.

Johnson & Johnson spokeswoman Carol Goodrich says the company is moving ahead with the appeal and the minimum prices are legal.

Legal: Johnson & Johnson spokeswoman Carol Goodrich says the company is moving ahead with the appeal and the minimum prices are legal

Bausch & Lomb representatives didn't respond to emails seeking comment.

Utah's Legislature passed the measure backed by 1-800 Contacts amid increasingly bitter pricing battles in the industry. While many contact lens sales come from eye doctors, discounters have been making inroads in recent years, and now 1-800 Contacts is now one of the nation's largest lens retailers.

Company officials said in a statement that they plan to drop prices in the wake of the ruling, calling it 'another victory in the ongoing battle to lower prices to consumers of contact lenses' in a statement.

The Utah measure bans pricing programs started by manufacturers who threatened to yank their products from resellers whose prices dipped too low.

Lawmakers deny the legislation was written to specifically benefit 1-800 Contacts.

The contact lens makers that dominate the market say the price minimums protect eye doctors from being undercut by sellers who don't offer the same expertise, but the pricing policies have also been scrutinized by Congress, consumer advocates and others.