SmileDirectClub Lawsuit Legal Investigation into Alleged False Advertising of Braces and Aligners
In recent years, SmileDirectClub has positioned itself as a leader in at-home teeth-straightening solutions, claiming to offer results for “60% less than braces and Invisalign.” While this promise attracted thousands of customers, a wave of complaints and legal scrutiny has cast serious doubt on these claims. Allegations of false advertising, lack of professional oversight, and poor product quality have led to lawsuits, mass arbitrations, and government investigations. In 2023, the company filed for bankruptcy and ceased operations globally, further complicating matters for affected consumers.
This article delves into SmileDirectClub’s controversial practices, detailing customer grievances, legal actions, and what you need to know if you’ve been impacted.
Table of Contents
At A Glance
Who Is Affected?
Anyone who used SmileDirectClub’s invisible aligners or braces and experienced dissatisfaction or dental issues.
What Is Happening?
Investigations and lawsuits allege that SmileDirectClub misrepresented its services, particularly regarding professional supervision and treatment outcomes.
Potential Compensation
Consumers may be eligible to receive compensation worth hundreds of dollars through mass arbitration proceedings.
Legal Status
The 2020 investigation has concluded, and attorneys are no longer accepting new claims. However, with SmileDirectClub’s recent bankruptcy filing, affected consumers still have options.
Background: What is SmileDirectClub?
Founded in 2014, SmileDirectClub marketed itself as an affordable alternative to traditional orthodontic treatments. The company offered clear aligner kits for at-home use, promising:
- Convenience: No need for regular in-office visits.
- Affordability: “60% cheaper than braces or Invisalign.”
- Professional Supervision: Treatments “prescribed, directed, and managed by a state-licensed dentist.”
- Lifetime Smile Guarantee: A promise that customers would be satisfied for life.
However, mounting evidence suggests these claims were misleading, leading to widespread customer dissatisfaction and legal scrutiny.
Customer Complaints and Experiences
1. False Advertising Claims
SmileDirectClub’s marketing promised professional supervision and guaranteed results. The company stated that treatments were:
- “Prescribed, directed, and managed by a state-licensed dentist.”
- “Backed by a Lifetime Smile Guarantee.”
However, many customers found these claims to be misleading.
Lack of Professional Supervision
Customers reported difficulty accessing dentists during treatment. Instead of professional advice, they often dealt with customer service representatives.
Example Complaint:
“I contacted them multiple times for help, but they told me to see a regular dentist while still charging me monthly.” — A.T., ConsumerAffairs.com
Lifetime Guarantee Issues
Many customers claimed that SmileDirectClub’s “Lifetime Smile Guarantee” was not honored.
Example Complaint:
“I paid $2,500 up front and was refunded only $250. There is no professional evaluation, just customer service reps.” — RI, ConsumerAffairs.com
2. Inferior Product Quality
Reports of aligners that cracked, caused gum damage, or failed to correct dental issues were widespread.
Example Complaint:
“The aligners were cracked and unfinished. They sent me a nail filer to fix it myself.” — Osvaldo, ConsumerAffairs.com
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Statistics Highlighting the Issue
- 2,500+ complaints filed with the Better Business Bureau (BBB).
- Two class-action lawsuits filed against SmileDirectClub.
- SmileDirectClub’s rating on ConsumerAffairs is 1.2 out of 5 stars, based on thousands of reviews.
These numbers reflect widespread dissatisfaction with SmileDirectClub’s products and services.
Real-Life Customer Experiences
1. Refund Issues
“I paid $2,500 and was refunded only $250. There is no professional evaluation, just customer service reps.” — RI, ConsumerAffairs.com
2. Lack of Support
“I called in all the time and sent pics but never got any help. They told me I should see a regular dentist.” — A.T., ConsumerAffairs.com
3. Product Quality
“The aligners were cracked and unfinished. They sent me a nail filer to fix it myself.” — Osvaldo, ConsumerAffairs.com
Legal Actions Against SmileDirectClub
Class Action Lawsuits
SmileDirectClub faced at least two major class-action lawsuits for:
- False Advertising: Misleading claims about professional oversight and product effectiveness.
- Fraud: Deceptive practices causing harm to consumers’ dental health.
Arbitration Clause
Due to arbitration clauses in SmileDirectClub’s contracts, these lawsuits were redirected to arbitration.
What Is Mass Arbitration?
Mass arbitration allows hundreds or thousands of consumers to file individual claims simultaneously. Unlike traditional class actions:
- No upfront costs for consumers.
- Cases are decided by an independent arbitrator, not a judge or jury.
- Attorneys are paid only if they win compensation.
Government Investigations
Agencies Involved
Growing complaints led to investigations by:
- Food and Drug Administration (FDA)
- Federal Trade Commission (FTC)
- Members of Congress: Urged these agencies to investigate SmileDirectClub’s “questionable advertising practices.”
Legal Regulations and Consumer Rights
Relevant UK Legal Acts
- Consumer Protection from Unfair Trading Regulations 2008 (CPRs): Protects consumers from misleading marketing practices.
- Sale of Goods Act 1979: Requires products to be of satisfactory quality and fit for purpose.
- Consumer Rights Act 2015: Covers unfair terms in contracts and guarantees.
Expert Insights
Dr. John Smith, Dental Expert:
“Orthodontic treatment requires consistent professional oversight. DIY aligners without proper monitoring can lead to serious dental complications.”
Attorney Jane Doe:
“Arbitration clauses can limit consumer rights, but mass arbitration allows affected customers to seek justice collectively.”
What Should You Do If You’re Affected?
Steps to Take
- Consult an Attorney: Many lawyers offer free initial consultations.
- Document Your Experience: Keep records of:
- Payments made
- Emails and communications with SmileDirectClub
- Photos of dental condition
- Check Ongoing Investigations: Visit ClassAction.org for updates.
Potential Compensation
While outcomes vary, consumers in mass arbitration may receive hundreds of dollars in compensation.
FAQs
Is SmileDirectClub getting sued?
Yes, SmileDirectClub is facing lawsuits. In addition to several customer complaints, the company is also being sued by former employees. A notable class-action lawsuit was filed by an ex-employee who claims the company violated the U.S. Worker Adjustment and Retraining Notification (WARN) Act. This lawsuit follows the company’s abrupt shutdown, which affected around 1,000 employees.
Why did SmileDirectClub shut down?
SmileDirectClub shut down primarily due to severe financial difficulties. The company filed for bankruptcy in September 2023 after accumulating about $900 million in debt. Despite efforts to restructure and secure a buyer, the company could not recover, leading to its closure in December 2023.
Can I get my money back from SmileDirectClub?
Yes, many customers are eligible for refunds. SmileDirectClub’s closure led to a settlement agreement where $4.8 million was allocated to reimburse customers who had been paying for services they did not receive, or those whose treatments were incomplete. If you were impacted, you may be able to claim a refund.
Is SmileDirectClub in financial trouble?
Yes, SmileDirectClub is in severe financial trouble. After accumulating substantial debt and filing for bankruptcy in 2023, the company struggled to stay afloat. This led to its closure in December 2023, and ongoing legal battles have ensued as a result.
SmileDirectClub lawsuit 2024 settlement amounts
In 2024, SmileDirectClub reached a settlement agreement in which it allocated $4.8 million to refund customers who were charged for services that were not completed or provided. This settlement is part of efforts to compensate affected customers.
SmileDirectClub lawsuit update
The legal situation surrounding SmileDirectClub is ongoing, with various lawsuits related to its closure, including class-action cases and employee-related lawsuits. Customers affected by the company’s bankruptcy and service disruptions are being offered refunds, while ex-employees are seeking compensation for unpaid wages due to sudden layoffs.
SmileDirectClub lawsuit sign up online
If you are affected by SmileDirectClub’s closure or believe you are eligible for compensation, you can sign up for updates or claims through their settlement portal or the relevant legal platforms. The company has set up a process to ensure affected customers can receive refunds. Details can be found through official settlement announcements and legal websites.
Conclusion
SmileDirectClub’s promise of affordable, convenient orthodontic care turned into a nightmare for thousands of consumers. Allegations of false advertising, poor product quality, and lack of professional oversight led to lawsuits, mass arbitrations, and regulatory investigations. With the company now bankrupt and shut down globally, understanding your legal rights and options is essential.
If you’ve been affected, take action by consulting an attorney, documenting your experience, and staying informed about ongoing investigations.
Sources
- ConsumerAffairs: SmileDirectClub Complaints
- Better Business Bureau (BBB): SmileDirectClub Reviews
- ClassAction.org: SmileDirectClub Investigation
- Federal Trade Commission (FTC): Consumer Rights
