On August 16, 2019, SmileDirectClub, LLC (“SmileDirectClub” or “SDC”) filed with the Securities and Exchange Commission (“SEC”) for an initial public offering.[1]

As discussed by the American Association of Orthodontists (“AAO”) in a prior news release, the AAO has serious concerns about direct-to-consumer orthodontics when it sees hundreds of “Customer Complaints” on the Better Business Bureau’s website for SmileDirectClub, LLC (“SmileDirectClub” or “SDC”).[2]The Better Business Bureau’s (“BBB”) website now has more than 1,050 “Customer Complaints” against SmileDirectClub.[3] This number has increased by over 450 “Customer Complaints” since December 19, 2018.[4]  SmileDirectClub also has an invite-a-friend program where referrers who invite their friends to join SmileDirectClub (on such channels as social media) receive a gift card after their friends’ SmileDirectClub purchase ships.[5] The “Terms” of SmileDirectClub’s invite-a-friend program do not appear to require referrers to let their friends know that the referral involves the incentive of a gift card.[6]

Some of the reports of alleged health and/or treatment issues involving direct-to-consumer orthodontics appear to be at odds with SmileDirectClub’s claim that “[t]here’s nothing really harmful with clear aligners. That’s one of the best things about this is you can’t really hurt people with this, which is nice.”[7] The AAO disagrees with SmileDirectClub’s statement because orthodontic aligners are meant to move teeth, and if that movement is not done correctly it can lead to potentially irreversible and/or expensive damage such as tooth and gum loss, changed bites, and other issues – some of which may not arise immediately.

Individuals and patients who have dental issues can contact their treating dentist, state or territory/provincial dental boards or authorities,[8] state Attorney General’s consumer protection office[9] or provincial consumer affairs office,[10] regulatory agencies like the Food and Drug Administration (“FDA”),[11] and their elected officials (e.g. Governor, state representative, etc.) about such issues.

The AAO’s previously issued press release included information on the following:

  • Dental Boards’ Jurisdiction
  • Legal and Advocacy Developments
  • SmileDirectClub’s Consent and History Form
  • Certain SmileDirectClub Representations
  • SmileDirectClub’s Affiliated Doctors
  • SmileDirectClub’s Price

The AAO believes it is in the best interest of patients to have orthodontic treatment conducted under the direct and ongoing, in-person supervision of a licensed orthodontist. SmileDirectClub’s current Consent and History form even requires a potential patient to agree: “I further understand that my clear aligner therapy treatment will only address the alignment of my teeth and will not correct my existing bite condition. In order to correct the current condition of my bite, I will need to seek more comprehensive treatment via my local dental professional.  Because I am choosing not to engage the in-patient services of a local dental professional, I understand and accept that my teeth will be straighter than they currently are but may still be compromised.”[12]  (Emphasis added).

To access the AAO’s Consumer Alert – “Questions to Consider When Researching Direct-To-Consumer Orthodontic Companies” – visit https://www.aaoinfo.org/_/online-orthodontic-companies/.

Please keep in mind that the foregoing involves certain legal proceedings, and we appreciate your understanding in the sensitivities related to any legal proceeding. Other activities regarding direct-to-consumer orthodontics are listed here – https://www1.aaoinfo.org/legal-advocacy/dtc-advocacy-page/.

[1] See https://www.sec.gov/Archives/edgar/data/1775625/000104746919004785/a2239489zs-1.htm.
[2] See https://www.bbb.org/us/tn/nashville/profile/cosmetic-dentistry/smiledirectclub-0573-37111672.  See also http://www.fox5atlanta.com/health/fox-medical-team/finding-the-right-braces-proves-tricky-for-atlanta-man (last visited July 25, 2019); https://www.wrdw.com/content/news/Mail-order-braces–Is-your-smile-worth-the-cost-452548583.html (last visited July 25, 2019); see also THE CAPITOL FORUM, June 21, 2019, Vol. 7 No. 227, “SmileDirectClub: Dissatisfied Customers Asked to Sign Release Before Getting Refund; Restrictions on Complaints and Reviews in Release Could Run Afoul of State and Federal Laws.”
[3] https://www.bbb.org/us/tn/nashville/profile/cosmetic-dentistry/smiledirectclub-0573-37111672 (last visited on August 16, 2019).
[4] D. Blaine Leeds, DDS et al. v. Board of Dental Examiners of Alabama et al., Case No. 2:18-cv-01679 (N.D. Ga.) (“Motion of the American Association of Orthodontists to File Brief as Amicus Curiae in Support of Defendants’ Motion to Dismiss,” Ex. 1 (pp. 14-15), and Ex. L).
[5] See https://smiledirectclub.com/invite/ (last visited July 26, 2019).
[6] See https://smiledirectclub.com/terms/ (last visited July 25, 2019).
[7] See https://www.bizjournals.com/nashville/news/2019/03/14/fast-growth-harsh-critics-meet-the-nashville.html (last visited July 25, 2019).
[8] Last visited July 25, 2019.
[9] Last visited July 25, 2019.
[10] Last visited July 25, 2019.
[11] Last visited July 25, 2019.
[12] https://webcache.googleusercontent.com/search?q=cache:https://smiledirectclub.com/consent/ (last visited July 25, 2019).

Source: https://www1.aaoinfo.org/