In a defeat for the Federal Trade Commission (FTC), a federal appeals court in New York on Thursday, August 26, rejected a request to reconsider its earlier decision to clear 1-800 Contacts of antitrust charges involving agreements to restrict search advertizing.
The 2nd Circuit Court of Appeals didn’t give a reason for denying the FTC’s request, reported MediaPost.
Unless the Supreme Court intervenes, the 2nd Circuit decision will remain on the books — and could well encourage other companies to sue competitors over search advertising tactics. An FTC spokesperson declined to comment Thursday on whether the agency will seek to appeal to the Supreme Court.
Related: Court Rejects FTC Antitrust Case Against 1-800 Contacts
The legal dispute between the FTC and 1-800 Contacts stems from a series of lawsuits brought by the contact lens retailer between 2004 and 2013. During that time, the company sued (or threatened to sue) at least 14 competitors, on the theory that they infringed 1-800 Contacts’ trademark by using it to trigger paid search ads.
Thirteen of the companies settled with 1-800 Contacts by agreeing to restrict the use of its trademark in search advertising. In 2016, the FTC alleged in an administrative complaint that those deals violated antitrust law.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI