FTC charges LasikPlus with expansion and conversion pricing fees

“If you are nearsighted, farsighted, or have astigmatism, LasikPlus can help correct your vision for only $250.” This is just one example of how LCA-Vision (which consumers may know as LasikPlus or Joffe MediCenter) promotes its services to potential clients. But according to a $1.25 million settlement with the FTC, the company was optimistic about pricing because only 6.5% of consumers who received consultations qualified for the surgery at the promotional price, and only 1.3% ultimately received the surgery. . Most people buy it at this price, which ranges from $1,800 to $2,295 per eye.

The $250 price tag (Joffe MediCenter’s promotion was $295) was the centerpiece of the company’s advertising via television, radio, direct mail and the Internet, according to the complaint. For example, according to the LasikPlus ad:

• “What if we told you there was a quick, easy way to get rid of the daily hassles of contact lenses and glasses? And even better… what if it cost as little as two hundred and fifty dollars? Well, that’s all It’s all true…and it’s all thanks to LasikPlus. Now…LasikPlus can help fix your vision for just $250…our lowest price ever!”
• “Frustrated by glasses or contacts? Now you can improve your vision to 20/20 with LASIK at LasikPlus, America’s most recommended LASIK provider. For a limited time now, get LASIK surgery for as low as $250 at LasikPlus . Call or go online today to schedule your free LASIK exam, it’s completely free.”

The ad further focuses on the price of $250 by directing potential customers to the URL 250lasik.com.

Advertisements for Joffe MediCenter make similar pricing claims:

• “Make this the year you finally get that LASIK surgery you’ve been considering. Joffe MediCenter is the Twin Cities’ home for custom LASIK. With top-notch laser technology, experienced doctors, and the most affordable all-laser LASIK prices. Joffe MediCenter now offers customized LASIK starting at just $295 per eye.”
• “LASIK $295. Call Joffe for your free LASIK eye exam and find out how you can qualify for $295 LASIK.”

According to the FTC, many ads promoting $250 or $295 LASIK did not contain any qualifying information at all. Others use general language such as “Restrictions apply” or “See website for details,” which is often conveyed in much smaller print than a $250 or $295 headline.You’ll need to read the indictment to learn more about the charges, but the FTC says if A consumer visits the LasikPlus website and if They found a little heart icon next to the price of $250. if They scroll down through a dense mass of small type, and here’s what it says in gray font on a black background:

♥ Price of $250 per eye applies to patients with qualifying insurance coverage receiving up to -1.00 diopter astigmatism and up to -1.00 diopter astigmatism treatment with conventional excimer laser (Advantage Plan not available). Prices range from $247 to $2,299 per eye, depending on prescription, laser, Advantage plan selected, and patient’s insurance coverage. No previous laser vision correction of any kind is eligible for the $250 discount. Not available at LasikPlus locations in Ft. Fort Lauderdale, Florida, Oklahoma City, Oklahoma. As of October 31, 2014, this is the best price compared to prices posted online by LASIK providers in other countries.

The FTC further alleged that patients who directly clicked on the “Schedule a Free Consultation Now” link or contacted the company’s call center were often immediately scheduled for an appointment, even bypassing hard-to-find online information. The complaints also include examples of how potential customers who asked direct pricing questions were turned away.

Once a potential customer comes in for a consultation, what they experience can best be described as “scaling and switching.” It’s only after spending a lot of time — including lengthy eye exams that often last 90 minutes to two hours — that most people learn they don’t qualify for the advertised rates of $250 or $295, according to the complaint. For example, any potential client who is farsighted or has more than -1.00 diopters (vision roughly equivalent to 20/30 or 20/40 on an eye chart and good enough to drive without glasses) will be told that they are not eligible for the advertised services. price.

The FTC said the company trained employees on strategies to convince those who didn’t qualify to switch to the much more expensive regular LASIK, including teaching how to “overcome” patients’ price objections and “transition” them to Laser surgery. Full price program. One example mentioned in the complaint is: “[P]Staff were instructed to wait until the patient’s eye exam was completed, where staff had a chance to discuss the benefits of LASIK surgery and “get the patient to actually want it,” before revealing that the patient did not qualify for the promotional price. “

As for the lucky ones who do qualify for the $250 price, most end up switching to the pricier LASIK after learning that the $250 procedure can only be performed with an older, less precise laser. As a result, the lawsuit alleges, only 1.3% of all consumers consulted at the defendant centers received LASIK surgery at the promotional price.

According to the Federal Trade Commission, hundreds of consumers complained that the ads were misleading. But some of the most notable concerns were voiced by LasikPlus’ own people. As one employee said, “I agree that the $250 promotion is deceptive and not consistent with where we are or where we want to go.”

One LasikPlus surgeon added, “It doesn’t help that we’re a liar if we say, ‘Pay $250 to get your lasik surgery.'” Many patients feel uncomfortable when they know our prices. anger. ” One LasikPlus Center Director took particular issue with how the company hides key messages on its website: “I know we do have a disclaimer about qualified Rx in very small print at the bottom, but it’s hard to tell/find . A heart next to something doesn’t usually mean there’s a bullet in the fine print.” But as another member of the LCA team observed, “It’s simple bait and switch, and it works. Let’s not start acting like We do it for safety[k]e of the world. “

In addition to making $1.25 million in financial judgments based on consumers’ wasted time during consultations, the proposed settlement also prohibits misrepresentations about the price or total cost of LASIK surgery or any material limitations or restrictions that are not based on clinical judgment. Independent medical professionals affiliated with our company.

The lessons from this case extend far beyond LASIK. What information can other companies making pricing claims about medical procedures gain from the proposed settlement?

Ditch the bait-and-switch approach to pitching. Do we really need to remind companies that “bait and switch” sales tactics are illegal? Don’t lure consumers with deceptively low prices and then pull the old switch. Also, be sure to clearly disclose important information about promotional pricing, including eligibility restrictions. The fact that someone, somewhere might qualify for a minimum promotion is not enough to substantiate the broader pricing proposition.

Don’t waste consumers’ time. According to complaints, people often made lengthy appointments before being told they had to pay much more than the advertised price.time yes Therefore, developing specialized sales strategies that waste the time of large numbers of potential customers is a form of consumer harm.