Smile Direct Club, a pioneer in direct-to-consumer orthodontic treatment, has faced multiple lawsuits between 2023 and 2025 addressing allegations related to false advertising, product liability, antitrust claims, and consumer protection violations.
Background and Origins of Smile Direct Club Lawsuit
Founded in 2014, Smile Direct Club offered affordable, remote clear aligner therapy without traditional in-person orthodontist visits. While initially popular, the company drew criticism and legal scrutiny due to reported dental injuries, ineffective treatments, and aggressive marketing tactics. These concerns triggered numerous consumer lawsuits and regulatory challenges globally.
False Advertising and Product Liability Claims Against Smile Direct Club
Many lawsuits centered on claims that Smile Direct Club misled customers regarding professional supervision and the safety and efficacy of their aligners. Consumers reported worsening dental conditions and unfulfilled promises about treatment outcomes. States and consumer groups pursued actions alleging violations of consumer protection statutes and warranty laws.
Antitrust Litigation Involving Smile Direct Club and Align Technology
In 2025, Align Technology, the maker of Invisalign, agreed to a $31.75 million settlement related to a class action alleging price-fixing and market suppression in collusion with Smile Direct Club. The FTC and plaintiffs contended this hampered competition and inflated prices in the teledentistry sector.
Bankruptcy and Post-Bankruptcy Legal Issues
Facing financial pressure, Smile Direct Club filed for Chapter 11 bankruptcy in late 2023, halting operations. Post-bankruptcy, numerous customers reported being wrongly billed through SmilePay installment plans despite incomplete treatments. This led to a $4.8 million refund settlement coordinated with the New York Attorney General to compensate affected consumers.
Class Actions and Arbitration Proceedings
Due to Smile Direct Club’s mandatory arbitration clauses, many individual and class-action claims have proceeded through arbitration, handling thousands of consumer complaints in a coordinated manner. This process continues to resolve disputes about damages and accountability.
Public and Industry Response to Smile Direct Club Lawsuit
The lawsuits highlighted broader challenges in balancing healthcare innovation with consumer safety and regulatory oversight. Dental professionals and advocacy groups pushed for stricter standards to protect patients using direct-to-consumer dental products.
Conclusion on Smile Direct Club Legal Challenges
The Smile Direct Club lawsuit saga underscores the complexities faced by emerging health-tech companies blending digital innovation with medical services. It demonstrates the need for transparent marketing, robust consumer protections, and ongoing scrutiny in teledentistry’s evolving landscape. Affected consumers are encouraged to seek legal advice to participate in settlements and arbitration processes.
