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The former Nashville, Tennessee-based teledentistry company agreed to the move after it continued to charge more than 28,000 consumers despite filing for bankruptcy and stopping services in September 2023.
Multiple complaints were filed with the New York State Office of the Attorney General (OAG) after consumers were told to keep making monthly installment payments despite no longer receiving aligner treatment.
In December 2023, OAG sent a cease-and-desist letter to SmileDirectClub directing the company to stop advising consumers to keep making payments because it was no longer providing services.
“SmileDirectClub shut its doors for good, but illegally continued to charge New Yorkers for costly dental services,” said New York Attorney General Letitia James.
“Dental care is expensive and SmileDirectClub promised customers that they would provide affordable, quality care without the price tag, but instead, they extracted thousands of dollars from hardworking people.
“Today, we are putting money back into people’s pockets who were cheated and reminding companies that if they prey on New Yorkers, my office will step in to protect consumers.”
SmileDirectClub offered dental services, including aligner treatment to help straighten teeth, through its online platform. The majority of customers paid a $250 down payment and then $89 for 26 months, for a total of more than $2,500.
Following the settlement, consumers who were improperly charged will receive refunds. A portion of the refunds will be issued automatically while additional refunds will be given to consumers who submit an online request to Healthcare Finance Direct.
A total of 2,265 New Yorkers will be given refunds.
Eligible consumers will be contacted by email with information on both the automatic refund and how to request the additional refund.
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