Smile Direct Club and Patient NDAs
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- Published: Tuesday, 18 July 2023 10:37
- Written by Peter Ingle
- Hits: 2446
Smile Direct Club (SDC) has been a trail blazer in developing direct to consumer orthodontics. No strangers to controversy, they have pushed on using heavy marketing and a well-respected legal team.
A recent legal decision may cause them some difficulty, overturning one of their routine practices. As the New York Times put it in 2020, “This Company Says It will fix your smile. It May Shush You if It Doesn’t”
One means for SDC to burnish its image has been their use of NDA’s. Nondisclosure agreements, have typically accompanied settlements they have made with dissatisfied customers. This has contributed to SDC’s brand hygiene. It warrants comparison with the situation UK dentists would normally face. When for example, Dental Law Partnership(DLP) achieve a settlement, the practice and dentists involved can expect to see an eye catching story in the local press, naming them, as well as of course headlining the amount of damages plus costs, and name checking DLP. These stories tend to carry significant details of the alleged short comings and their effects upon the patient, only holding back when it comes to putting a figure on DLP’s costs.
As the New York Times had revealed, customers requesting a refund beyond the 30 day guarantee policy were asked to sign an NDA promising that they: “will not make, publish, or communicate any statements or opinions” about SDC’s employees, officers directors, products, or services that make them look bad.
Over the last month this has changed. SDC has now agreed to release 17,000 customers who were presumably dissatisfied with its service, from NDAs as part of a settlement with the District of Columbia’s Attorney General. These had prohibited them from leaving negative reviews. The settlement requires SDC to change its refund guarantee policy and inform customers who signed NDAs that they are now free to discuss their experiences.
“SmileDirectClub promised a simple, safe, and affordable way to straighten teeth and touted five-star reviews,” said Attorney General Brian L. Schwalb in a statement. “But behind the scenes, the company silenced dissatisfied consumers and buried complaints about injuries caused by its products.”
SmileDirectClub is also required to pay $500,000 for violating DC consumer protection laws under the settlement, though the company denies having violated any laws or engaged in any deceptive or unfair practices within the document.
SDC saw things from a different perspective in their press release. Their headline gives a good indication: “SmileDirectClub and DC Attorney General Settle Dispute - Oral Care Innovator Leads Orthodontic Industry In Taking Further Steps to Increase Customer Transparency”
SDC refer to the litigation, “falsely alleging that it stifled consumer reviews.” Chief Legal Officer, Susan Greenspon Rammelt said. “For too long there has been a misinformation campaign claiming SmileDirectClub stifles negative consumer feedback through the use of non-disclosure agreements. While we were disappointed this misinformation caused the District of Columbia to file its complaint, we are pleased to set the record straight and work with the District of Columbia’s Office of the Attorney General in its efforts to create new policy for the industry and increase customer transparency.” She went on to, “encourage the rest of the orthodontic industry to follow our example as a leader in consumer transparency and embrace honest reviews and feedback from consumers in digital forums.”
SDC have has previously ceased operations in some markets, including, Austria, Germany, Hong Kong, Mexico, the Netherlands, New Zealand, Singapore and Spain. This may, or may not, be partly related to the local regulatory and consumer protection environment.
In the UK, where SDC continues to operate, The GDC have been rather muted in their comments about direct to consumer orthodontics. The occupants of 37 Wimpole Street are after all no strangers to heroic reputation management.
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