Australian Competition and Consumer Commission v SmileDirectClub LLC

The Federal Court of Australia was asked to decide if SmileDirectClub (SDC) engaged in misleading or deceptive conduct by making false claims about consumers' eligibility for reimbursement from private health insurers for their Aligners and Aligner Treatment. The Australian Competition and Consumer Commission (ACCC) sought relief including declarations, pecuniary penalties, consumer redress orders, corrective communications, and a compliance program. The court found that SDC made false representations about consumers' potential for private health insurance coverage for their Aligner Treatment, which misled consumers. The court granted the ACCC's requests for relief, ordering SDC to pay pecuniary penalties, provide redress to affected consumers, issue corrective communications, and implement a compliance program. The penalties were set at $1.75 million for each of the two SDC entities involved, to be paid in six equal instalments over 30 months. The consumer redress program included specific refund amounts and conditions for different categories of customers. The compliance program required SDC to appoint compliance officers, conduct risk assessments, implement training and policies, review their compliance program annually, and report to the ACCC. These measures aim to ensure SDC's future compliance with consumer protection laws and prevent similar breaches.