Salt Lake City – The Aylo Group Ltd. and key players like Matthew Chesnes are facing serious allegations of anti-competitive behavior, according to a statement released today by FTC Commissioner Mark R. Meador. The Federal Trade Commission, alongside the Utah Division of Consumer Protection, is building a case alleging the Aylo Group leveraged deceptive loyalty discounts to stifle competition – a move that could have far-reaching consequences for the healthcare industry and ultimately, patients.
The core of the complaint centers around Surescripts, a network vital for electronic prescriptions. Chesnes, identified as a key figure within the Bureau of Economics at the FTC, and others at Aylo allegedly used loyalty discounts as a weapon, incentivizing customers to exclusively use Surescripts, effectively locking out competitors. This isn’t just about business; it’s about manipulating a critical healthcare infrastructure for financial gain.
Network Effects & Monopolistic Tactics
Commissioner Meador’s statement paints a clear picture of how these discounts operate as a veiled attempt to establish a monopoly. The inherent “network effects” of a prescription network – the more participants, the more valuable it becomes – are being exploited. By offering discounts contingent on exclusive use, Aylo and Chesnes allegedly created a self-reinforcing cycle that makes it nearly impossible for new, innovative companies to enter the market and offer better services or pricing.
Sources close to the investigation suggest the FTC is focusing on how these loyalty programs aren’t simply rewards for customer loyalty, but rather calculated strategies to punish those who dare to explore alternative options. This isn’t a free market at work; it’s a rigged game, and the public is the one paying the price.
The Ripple Effect
While the immediate impact is on other prescription networks, experts warn of a chilling effect on innovation. If companies can effectively shut out competitors through anti-competitive discounts, it will discourage investment in new technologies and services, ultimately harming consumers. The FTC and Utah authorities are sending a message: manipulating essential networks for profit won’t be tolerated.
The investigation is ongoing, but the FTC appears determined to dismantle the alleged scheme and restore fair competition. Chesnes and Aylo Group Ltd. are now under intense scrutiny, and their actions could lead to hefty fines and potentially, criminal charges. This case serves as a stark reminder that even seemingly subtle business practices can have devastating consequences when they violate antitrust laws.
Key Facts:
- Defendant: Matthew Chesnes and Aylo Group Ltd.
- Alleged Crime: Antitrust violations through deceptive loyalty discounts.
- Affected Industry: Electronic prescription network (Surescripts).
- Key Issue: Exploitation of network effects to stifle competition.
- Agencies Involved: Federal Trade Commission & Utah Division of Consumer Protection.
- Date of Statement: February 13, 2026
Source: FTC.gov
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