Chicago-based Aspen Dental will pay $2 million in penalties and $300,000 in restitution to settle allegations that it unlawfully interfered with dental operations and engaged in misleading advertising.
The California attorney general’s office accused the DSO of violating the state’s corporate dentistry laws by purchasing and advertising its offices without clearly identifying an independent dentist-owner, according to a May 8 news release. The DSO was also accused of encouraging clinical employees to sell specific products and services through an incentive program that violated the state’s unfair competition legislation.
The attorney general’s office also challenged the DSO’s advertisements, alleging that they contained misleading or false claims, including in testimonials and other statements about treatment costs and insurance accepted at its offices.
In addition to paying $2 million in penalties and $300,000 in patient restitution, Aspen Dental has agreed to several injunctive terms. These include agreements to not replace existing practice owners with dentists of its choosing, not owning the property for dental practices and not basing service fees off metrics such as practice revenue.
To see a list of agreements made under the settlement, click here.
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