ACCC accuses SmileDirectClub of deceiving Australians over teeth aligners

Teeth-straightening colossus SmileDirectClub allegedly misled Aussie customers in claiming their aligners would be covered by health insurance.

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Teeth-straightening giant SmileDirectClub has been accused of misleading hundreds of Australian customers into believing they would be able to claim part of the cost of their aligners on health insurance.

The allegation is contained in documents filed by the Australian Competition and Consumer Commission in the Federal Court on Monday.

The documents, which The Daily Telegraph obtained from the court, accuse the $4 billion company of breaking the law in emails sent to 648 consumers in 2019.

Image from the results page of SmileDirectClub's Australian website. Picture: SmileDirectClub

The ACCC claims the emails conveyed a representation that SmileDirectClub had contacted the would-be customer’s health insurer to ensure its cut-price aligners were covered.

The ACCC alleges the representation was “false, misleading or deceptive” in breach of Australian consumer law.

The ACCC wants the court to impose financial penalties on SmileDirect’s local operation and US parent. The watchdog also wants “redress” for loss or damage suffered by customers.

SmileDirectClub Australia director, Sydney’s Jason Coglan, told The Telegraph it was “disappointed that the ACCC has chosen to institute proceedings.”

An example of the results SmileDirectClub claims it delivers. Picture: SmileDirectClub

Mr Coglan said SmileDirectClub had partnered with large private insurers in the US, Canada and the EU “to ensure the access to orthodontic care it enables is a covered treatment and is even more affordable to consumers. It continues to be our position that this should be true in Australia.”

SmileDirect’s current market worth is $4 billion, although its value has been as much as twice that.

The new court action marks an expansion of the ACCC attack on discount “teledentistry”.

It has previously targeted SmileDirect rival EZ Smile, accusing it of making a false or misleading representation on its website that its teeth straightening treatment plans were supplied by dental professionals, including orthodontists who were registered in Australia, or otherwise subject to Australian health regulation standards, when that was not the case. EZ Smiles’ clear dental aligners are made in China.