(PatriotSpotlight.org) – A cosmetic surgery clinic in the Seattle area has been slammed with a whopping $5 million fine. It comes on the back of a federal probe finding the company involved in several deceptive actions such as posting fraudulent positive reviews. They were also found to have threatened customers who left negative comments online about their experience.
The clinic illegally got patients to sign off on nondisclosure agreements (NDAs) forbidding them from sharing negative reviews. “Writing a truthful review about a business should not subject you to threats or intimidation,” the Washington attorney general stated, stressing that reading reviews was a key way consumers evaluated businesses, especially ones where health and safety ought to be key.
The resolution, filed in federal court, requires Allure Esthetic to pay approximately $1.5 million in restitution to about 21,000 affected individuals. Patients coerced into illegal NDAs will be given a one-off $50 payment, and people who shelled out for a nonrefundable consultation fee before signing an NDA will be recompensed $120. The $3.5 million left will be paid to the attorney general’s office to cover fees and monitoring moving ahead.
The lawsuit also highlighted other unscrupulous practices by Allure, including rigging “best doctor” competitions, withholding patient rebates, and altering before-and-after photos. Some patients who posted negative reviews were not only threatened with legal action but were also offered cash and free services to retract their comments. Over 10,000 patients signed NDAs that restricted them from posting negative reviews online.
The owner of Allure, who runs multiple clinics under various names, was implicated in authorizing payments and services to silence dissatisfied patients. Employees were directed to fabricate positive reviews using fake email accounts.
As part of the consent decree, Allure Esthetic must hire an independent forensic accounting firm to audit its consumer rebate program and ensure compliance with the settlement terms over the next decade. Future breaches could prompt further civil fines of as much as $125,000 per case.
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