By Randy Hutchinson
President of the BBB
Reprinted from The Commercial Appeal
The FTC has settled charges with a Florida-based company it alleged violated the Opioid Addiction Recovery Fraud Prevention Act, which allows the FTC to address unfair or deceptive acts or practices related to any substance use disorder treatment product or service. I’ve written about many FTC actions and the allegations in this case are particularly disturbing given the population involved.
The FTC says Evoke Wellness, a related company, and their officers targeted consumers searching for substance use disorder treatment centers online using the names of other clinics as keywords in paid Google search ads. Consumers who called expecting to be connected to the clinic in the ad, an addiction treatment hotline, or a centralized admissions office instead ended up with a call center associated with Evoke. Telemarketers reinforced the deception by falsely claiming to have a relationship with the clinic the consumer was trying to reach.
The FTC says that between 2021 and 2023, Evoke disseminated at least 68,510 misleading Google search ads, resulting in at least 3,500 calls to its call center. Telemarketers directed them to Evoke treatment centers.
In bringing the action, FTC Chairman Andrew N. Ferguson said, “Opioids have ravaged American communities, killing well over one hundred Americans per day and ruining the lives of countless others. Today’s settlement helps consumers affected by opioid addiction navigate their path to recovery by preventing fraudsters from leading them astray. The Commission will continue to take every action it can against those who prey on our nation’s vulnerable in their time of need.”
The settlement order imposes a $7 million civil penalty against the defendants, of which all but $1.9 million is suspended because of their inability to pay the full amount.
This wasn’t the FTC’s first enforcement action against a company in the substance use disorder industry. I wrote earlier columns about cases against a company that claimed its product could eliminate consumers’ nicotine addiction and another company that claimed its product could help consumers reduce and even eliminate their alcohol consumption. There have been other actions as well.
The FTC recommends that legitimate businesses involved in the marketing or sale of services to address opioid or another addiction check their online profile to be sure nobody’s impersonating them. It reminds dishonest businesses that it’s watching and they should tell the truth in their ads. Misleading ads hurt consumers and honest competitors.
The FTC recommends people searching for addiction treatment (or anything else) online ensure they’re dealing with the real thing:
To get help treating an addiction, start at FindTreatment.gov. And if you spot a dishonest business, tell the FTC at ReportFraud.ftc.gov.