On June 24, the Federal Trade Commission (FTC) filed a complaint in the U.S. District Court for the District of Maryland against Mercury Marketing, LLC, and several affiliated entities and individuals alleging that the defendants impersonated substance use disorder (SUD) treatment clinics in search ads to deceptively route consumers trying to call those clinics to the defendants.
FTC Alleges Fake Rehab Ads Misled Vulnerable Treatment Seekers
According to the FTC, the defendants used search advertisements that impersonated legitimate SUD treatment facilities. These ads displayed the names of specific clinics and included phone numbers that, when called, routed consumers to the defendants' call centers. Call center representatives allegedly misrepresented themselves as staff of the searched-for clinics or as employees of a centralized admissions office. The call centers then directed consumers to treatment centers owned by or affiliated with the defendants, such as Malibu Detox and Malibu Recovery Center, without disclosing their true affiliations.
The FTC alleges that the defendants' actions violated the FTC Act, the Opioid Addiction Recovery Fraud Prevention Act of 2018, and the FTC's Impersonation Rule. The agency seeks a permanent injunction to prevent future violations and the imposition of civil penalties on the defendants.
FTC Applies Impersonation Rule to Deceptive Lead Generation Tactics
Using the Impersonation Rule to focus on lead generation demonstrates that while the current commission may not be promulgating new rules, it will aggressively use those already in effect. The FTC's attack in this case parallels somewhat the FTC's recent stipulated order involving Evoke Wellness, where the agency charged that consumers were misled through fake directories and impersonated endorsements as part of a lead generation effort.
Together, these cases reflect a potentially emerging enforcement focus on lead generators and intermediaries who misrepresent themselves to divert vulnerable individuals, especially in sensitive sectors such as healthcare and substance use disorder treatment.
FTC Urges Marketers to Ensure Transparency in Healthcare Advertising
This case underscores the FTC's continued commitment to protecting consumers, particularly vulnerable individuals seeking health-related services, from deceptive advertising practices. Advertisers in all sectors should ensure that their marketing strategies, especially those involving paid search advertisements and call center operations, are transparent and do not mislead consumers about the nature or source of the services offered.
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