SmileDirectClub sued over alleged misuse of NDAs

Washington D.C. Attorney General Karl Racine has filed a suit against SmileDirectClub, alleging the orthodontic company had required customers to sign nondisclosure agreements (NDAs) to receive refunds. 

In so doing, the company had violated District law by prohibiting customers from writing online reviews if they wanted a refund for their purchase, said a press release from AG Racine’s office.

Are SDC consumers being silenced?

The AG alleges that the NDAs were also used to prevent customers who had painful experiences or injuries from the product from filing complaints with regulators or law enforcement to receive refunds.

“SmileDirectClub’s ‘Lifetime Smile Guarantee’ was a sham,” said AG Racine in the release. 

“Far from providing promised refunds with no strings attached, the company forced consumers to sign NDAs to get any money back after the first 30 days. 

“These consumers were promised perfect smiles, but many suffered pain or didn’t seen improvements. Forcing consumers to be silent about shoddy products and services in this way is illegal, and that’s why we’re going to make SmileDirectClub pay.”

According to the suit, SmileDirectClub requires customers to sign an NDA if a refund is required after 30 days. Customers are warned about fines and potential litigation if the NDA is broken.

SmileDirectClub advertises a 100% refund policy for customers that aren’t satisfied with their clear aligners after 30 days.