Costco Attacks J&J’s RPM Policy for Contact Lenses

Costco filed suit on March 2 against Johnson & Johnson Vision Care Inc. alleging that J&J violated Sherman Act §1 by conspiring to raise and fix the price of contact lenses (Costco Wholesale Corp. v. Johnson & Johnson Vision Care Inc., N.D. Cal., 3:15-cv-00941, 3/2/15).

Costco alleged in the U.S. District Court for the Northern District of California that J&J initiated a minimum retail or resale price maintenance (RPM) policy in about 2014 that caused a 30 percent increase in contact lens prices to Costco’s members. Costco wants its retail agreement with J&J containing the RPM ...