SmileDirectClub's shares hit an all-time low Oct. 14 after new legislation was signed in California that may make it more difficult for consumers to purchase teeth-straightening aligners, according to The Wall Street Journal.
The bill, AB 1519, requires any dentist providing orthodontic care, whether in-person or via telehealth, to review a patient's recent X-rays. SmileDirectClub sells its aligners without required a consumer to visit an orthodontists' office.
Additionally, the bill says that telehealth companies and dentists using telehealth services will be required to provide information about the treating dentist, reports WSJ. This rule is similar to rules traditional dentists must follow.
Consumers will also now have the opportunity to submit complaints to the Dental Board of California. It doesn't matter if they have signed an arbitration clause or nondisclosure agreement.
Because of this new law, SmileDirectClub shares closed at $9.70, a 13 percent decline since its initial public offering. This gives the company a market value of $3.7 billion.
In response to the legislation, SmileDirectClub said, "While this bill does not preclude SmileDirectClub's continued operations in California, it will create unnecessary hurdles and costs to Californians that need care but struggle to afford it."
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The bill, AB 1519, requires any dentist providing orthodontic care, whether in-person or via telehealth, to review a patient's recent X-rays. SmileDirectClub sells its aligners without required a consumer to visit an orthodontists' office.
Additionally, the bill says that telehealth companies and dentists using telehealth services will be required to provide information about the treating dentist, reports WSJ. This rule is similar to rules traditional dentists must follow.
Consumers will also now have the opportunity to submit complaints to the Dental Board of California. It doesn't matter if they have signed an arbitration clause or nondisclosure agreement.
Because of this new law, SmileDirectClub shares closed at $9.70, a 13 percent decline since its initial public offering. This gives the company a market value of $3.7 billion.
In response to the legislation, SmileDirectClub said, "While this bill does not preclude SmileDirectClub's continued operations in California, it will create unnecessary hurdles and costs to Californians that need care but struggle to afford it."
More articles on dental:
How Smile Brands has grown to a 400-supported office DSO: CEO Steve Bilt shares insight
Orthodontist used headlamp to treat patients during California power outage
Patients line up in middle of the night to receive free care at Florida clinic