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FTC Refunds $1.1 Million to LASIK Customers Misled by Deceptive Advertising

In a striking example of deceptive advertising practices, LCA-Vision, the largest provider of LASIK surgery in the United States, is facing repercussions from the Federal Trade Commission (FTC) for its misleading promotional tactics. The company enticed potential customers with advertisements touting LASIK procedures for as little as $250 to $295. However, for the vast majority of patients, the final costs ballooned to between $1,800 and $2,295 per eye—far from the advertised price.

This discrepancy has led to the FTC distributing over $1.1 million in refunds to more than 12,000 affected individuals, a move that underscores the agency’s commitment to protecting consumers from fraudulent practices. The refund stems from a January 2023 order that accused LCA-Vision of engaging in “deceptive bait-and-switch advertising,” with only 6.5 percent of those who sought consultations qualifying for the low promotional price. Most consumers discovered that they needed to have near-normal vision—sufficient to drive without glasses—to even be considered for the advertised rates.

The misleading nature of these advertisements was compounded by a lack of clarity regarding the promotional price, which was often misrepresented as the total cost rather than the per-eye fee. Between 2015 and 2020, LCA-Vision utilized an extensive marketing strategy across television, print, radio, and digital platforms to promote these low prices, ultimately leading many consumers to invest significant time and effort into consultations that resulted in much higher final costs.

In response to the FTC’s findings, Samuel Levine, director of the FTC’s Bureau of Consumer Protection, emphasized the importance of accountability: “LasikPlus lured customers in with a low-price offer that almost no one actually got, and today’s order requires the company to fix its advertising and compensate consumers for their wasted time.” This statement reflects a broader trend in consumer protection, where regulatory bodies are increasingly scrutinizing companies that mislead customers, especially as overall costs of goods and services rise.

In addition to the financial restitution, the FTC is keen on ensuring that LCA-Vision revises its advertising practices to prevent similar occurrences in the future. The median refund for affected customers is estimated to be around $91, with funds being disbursed via checks and PayPal. However, recipients are advised to remain vigilant against potential scams, as the FTC warns that it never requires upfront fees or sensitive personal information for refunds.

Moreover, as consumers navigate the complexities of LASIK surgery, it is crucial to remain informed about the risks associated with the procedure. In 2022, the U.S. Food and Drug Administration (FDA) issued guidelines emphasizing the importance of understanding potential side effects, such as persistent eye pain, dry eyes, and seeing glares or halos. Dr. Peter Hersh, a clinical professor of ophthalmology, has noted that while LASIK can be an “extremely effective and safe procedure in well-selected and informed patients,” it is essential for individuals to weigh both the risks and benefits based on their unique situations.

For those receiving refunds from the FTC, there are further considerations. While the agency typically does not issue tax documents for refunds, any payments reported to the IRS may come with a 1099 form requiring recipients to declare the amount as income on their tax returns. Additionally, recipients should be mindful of the validity period for cashing checks, as failing to do so could result in funds expiring, with reissuance dependent on the availability of the settlement fund.

In summary, the case against LCA-Vision serves as a cautionary tale for consumers considering LASIK surgery. It highlights the need for vigilance when encountering promotional offers that seem too good to be true. As the landscape of consumer rights continues to evolve, the FTC’s actions reaffirm the importance of transparency in advertising and the protection of informed consumer choice.

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