A dental services provider is paying more than $2 million to settle charges of false advertising by California Attorney General Rob Bonta.<\/p>\n
Bonta\u2019s office reached a settlement with Aspen Dental Management Inc. for engaging in false and misleading advertising. Aspen Dental describes itself as a dental support organization that provides business management and administrative services to dental offices, each of which operates under \u201cAspen Dental.\u201d<\/p>\n
The California DOJ says the company exceeded that role by unlawfully directing the practice, ownership, and management of dentistry in California.<\/p>\n
The settlement, which remains subject to court approval, includes injunctive terms, $2 million in penalties, and $300,000 in restitution funds for certain patients.<\/p>\n
Aspen Dental reports more than 1,000 offices nationwide. It entered California in 2019 and has 19 offices. As part of its expansion, it is alleged that Aspen Dental did not contract with existing dental offices, but selected, purchased, staffed, and advertised its offices without clearly identifying an independent dentist-owner. According to the California DOJ, Aspen Dental designed, built out, and furnished all of its offices and made detailed decisions about each location. It also selected, purchased, and installed all dental equipment across offices.<\/p>\n
Aspen Dental also encouraged the sale of particular products and services through direct incentives to its clinical employees. The company implemented an incentive program for hygienists to encourage the sale of clear aligners. The program offered hygienists $50 per sale to new patients or $100 per sale to existing patients. Such business practices limited dentist-owners, restricted staff, misguided patients, and violated California\u2019s ban on the corporate practice of dentistry and California\u2019s Unfair Competition Law, according to the California DOJ.<\/p>\n
In numerous advertisements, Aspen Dental created misleading or false representations, including misleading testimonials, ambiguity, misleading cost claims, and inexact pricing language, according to the California DOJ,<\/p>\n
As a part of the settlement, Aspen Dental has agreed to $2 million in penalties, $300,000 in restitution funds, and injunctive terms, including:<\/p>\n
Not replacing any practice owner with another dentist of its choosing.
\nNot owning the property for any practice.
\nNot basing service fees on revenue, sales, or profits.
\nProviding a written fee schedule for products and laboratory services.
\nClearly identifying the practice owner\u2019s name when creating, publishing, or disseminating advertisements.<\/p>\n