The Federal Trade Commission (FTC) has sued a substance use disorder (SUD) treatment provider for posing as other providers to get increased business.
Florida-based Evoke Wellness allegedly used deceptive Google search ads that appeared to represent other SUD providers, using its competitors’ names as keywords and displaying ads in a way that impersonated other clinics, according to the FTC.
Between 2021 and 2023, Evoke posted at least 68,510 misleading Google search ads, which resulted in at least 3,500 calls to Evoke’s call center, according to the suit. The ads allegedly violate the FTC Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018 (OARFPA).
OARFPA, established in 2018, authorizes the FTC to seek civil penalties for unfair or deceptive practices among SUD treatment providers. The lawsuit alleges that consumers “are suffering, have suffered and will continue to suffer substantial injury as a result of Defendants’ violations of the FTC Act and OARFPA.”
Evoke allegedly funneled people seeking care via sponsored ads that appeared to be other treatment providers to their own telemarketers. These telemarketers continued the charade, misrepresenting themselves as unaffiliated with Evoke, often falsely claiming that the consumer had reached a centralized admissions office or addiction treatment hotline.
When patients clarified that they were seeking a different, specific provider, telemarketers falsely claimed to have a relationship with the other provider.
“Preying on consumers suffering from addiction and other substance use disorders is wrong, and it’s illegal,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement. “The use of deceptive online ads to trick consumers into selecting one clinic over another is unacceptable, and the Commission will continue taking action against clinics, marketers, and others in this space, as well as their executives, when they break the law.”
Evoke operates seven facilities in Florida, Massachusetts, Ohio, Texas and Illinois. It offers inpatient, residential, intensive outpatient, detox, medication-assisted treatment and other treatments for SUD. It also provides mental health treatment.
The provider has not responded to Addiction Treatment Business’ request for comment by the time of publication.
The suit seeks a permanent injunction to prevent future violations of the FTC Act and OARFPA, impose civil penalties for each OARFPA violation and award monetary relief.
The FTC has a history of cracking down on misleading advertisements among SUD treatment providers.
In April 2024, the FTC banned virtual alcohol use disorder (AUD) treatment startup Monument from sharing patient health information for advertising purposes. The same month, the FTC ordered telehealth provider Cerebral to pay $15 million and restricted it from using or sharing sensitive consumer data. It also required it to allow customers to easily cancel subscriptions.
Both the Cerebral and Monument incidents boiled down to the companies’ public statements being inaccurate or misleading, experts previously told ATB.
In 2023, the FTC took action against AWAREmed Health & Wellness Resource Center for false or unsupported claims about the efficacy of its treatment of addiction, cancer and other serious conditions. The same year, the FTC also targeted nicotine cessation company Smoke Away and alcohol treatment company Sobrenix for false or deceptive marketing tactics.