FTC and Two States Sue Lens.com Over Hidden Fees on Contact Lenses

If you buy contacts or anything else online, this case is a reminder to check the final total, not the advertised price.

On Friday, Oct. 2, the Federal Trade Commission (FTC) sued online contact lens seller Lens.com. The FTC is the federal agency that protects shoppers from unfair and misleading business practices. The attorneys general of Utah and Nevada joined the case.

The lawsuit says Lens.com showed low prices in Google search ads and on its own website, then added a large charge at checkout. According to the FTC, that charge often doubled the advertised price. The agency says the practice has cost shoppers hundreds of millions of dollars.

These are allegations. A lawsuit is not a ruling, and a court will decide the case.

What the lawsuit claims

The complaint was filed in federal court in Nevada. It names Lens.com Inc., its owner Cary Samourkachian, and a related company called Speed Commerce LLC.

According to the FTC and news reports, the complaint alleges that:

• The low price was not the real price. A mandatory line called "Taxes & fees" was added at checkout.
• The charge was hard to see. It sat below the part of the screen shoppers could see, while a large "Continue" button invited them to move on without scrolling.
• The label was misleading. The name suggested state sales tax. But many states do not charge sales tax on contact lenses, and the suit says the charge was added anyway.
• The site promised "NO HIDDEN FEES." KTNV in Las Vegas reported that the complaint quotes this claim from the company's own marketing.
• Subscriptions were part of the problem. The low prices were also used to sign people up for AutoRefill, an automatic reorder plan. The suit says the steps to cancel were not clearly explained.

KTNV also reported one example from the complaint: a shopper ordered two boxes listed at $67.24 each but was charged $199.91.

Christopher Mufarrige, who leads the FTC's Bureau of Consumer Protection, said: "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."

The Utah Attorney General's Office said the practices "obscure the total price of contact lenses, preventing customers from determining what they will really pay," which makes it hard to compare prices with other sellers.

The FTC's commissioners voted 2-0 to bring the case. The suit cites the FTC Act, a federal law on online subscriptions called the Restore Online Shoppers' Confidence Act, and consumer protection laws in Utah and Nevada. News reports did not include a response from the company.

Why hidden fees matter

A fee that appears only at the end of checkout is often called a drip fee or junk fee. The idea is simple. A low first price pulls you in. By the time the real total shows up, you have already spent time picking products and typing in your details, so you may be more likely to just click "buy."

Hidden fees also make it hard to shop around. If one store shows the full price and another shows only part of it, the second store can look cheaper when it is not. That is the main point state officials made about this case.

For something you buy again and again, like contact lenses, a hidden fee adds up. A charge that doubles the price of each order could cost a regular buyer a lot over a year.

Your rights when you buy contacts

Contact lenses need a prescription. Under the FTC's Contact Lens Rule, you are entitled to a copy of your contact lens prescription from your eye doctor once your fitting is done. That rule exists so you can shop at any seller you choose.

The FTC also says contact lens prescriptions must be good for at least a year, unless your prescriber has a medical reason to make them shorter. If you need another copy, your prescriber has 40 business hours to send it after you ask.

Having your prescription in hand makes it easier to compare prices at several stores, including your eye doctor's office, big-box stores and online sellers.

What this means for your wallet

You do not need to be a Lens.com customer for this case to matter. The same tactics can show up on many websites. Here are some habits that could help:

• Compare the final total. Go all the way to the last checkout screen before deciding which store is cheaper. Ignore the first price you see.
• Scroll before you click. Look over the whole order summary, not just the part above the button.
• Question vague fee labels. "Taxes & fees," "service fee" or "processing fee" can hide a lot. If a fee is not explained, consider shopping elsewhere.
• Read subscription terms. Before joining an auto-refill plan, find out how to cancel and how much each shipment will really cost.
• Check past statements. If you have bought contacts online, look at your past receipts to see what you actually paid.
• Report problems. You can report a business you think misled you to the FTC or to your state attorney general.

If a charge looks wrong, you may also be able to dispute it with your credit card company. Ask your card issuer about its dispute process and time limits.

This article is for education only and is not financial advice. Everyone's situation is different.