Evoke Wellness to Pay $1.9 Million After Misleading Consumers in Substance Use Disorder Treatment Ads

Key Takeaways

• $1.9 Million Settlement: Evoke Wellness agrees to pay $1.9 million to settle FTC claims related to deceptive advertising practices targeting consumers seeking substance use disorder treatment.
• Deceptive Practices: Evoke used Google search ads and telemarketing to impersonate other treatment clinics, misleading consumers and violating the FTC Act and the Opioid Addiction Recovery Fraud Prevention Act.
• Permanent Ban on Misrepresentation: The settlement permanently bans Evoke from impersonating other businesses and using their competitors’ names in search ads.
• Compliance Program: Evoke is required to implement a compliance program to monitor call center activities and take corrective action against any violations.
• Civil Penalty Suspended: The $7 million civil penalty was partially suspended to $1.9 million due to Evoke's inability to pay the full amount.

Deep Dive

When you’re seeking help for substance use disorder, the last thing you need is to be misled. But that’s exactly what Evoke Wellness, a Florida-based treatment clinic, was accused of doing in a deceptive advertising scheme that spanned Google search ads and telemarketing.

The Federal Trade Commission (FTC) stepped in after it was revealed that Evoke Wellness, along with its affiliated companies and officers, used misleading tactics to make it look like they were affiliated with other well-known substance use disorder clinics. By using their competitors’ names as keywords in Google ads, Evoke’s ads made it appear as though the clinic consumers were searching for was just a phone call away, only to have them directed to Evoke’s call center. From there, telemarketers continued the deception, claiming to be part of the very treatment clinics consumers were trying to reach.

Evoke’s conduct, the FTC said, wasn’t just a small slip-up, it was a direct violation of the FTC Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018. This kind of misleading practice is particularly damaging to vulnerable individuals who are already facing one of the toughest battles of their lives i.e., addiction.

FTC Chairman Andrew N. Ferguson had strong words on the issue, “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.”

As part of the settlement, Evoke agreed to pay $1.9 million, down from a $7 million penalty, given their inability to pay the full amount. This resolution also includes a permanent ban on the deceptive advertising practices. Evoke is now prohibited from using their competitors’ names in search ads, impersonating other businesses, and misrepresenting their substance use disorder treatment services.

To make sure these deceptive practices don’t slip through the cracks in the future, the settlement also requires Evoke to put in place a compliance program to keep an eye on their call centers and ensure that no misrepresentations take place. Additionally, any employees who violate the terms of the agreement will face corrective action.

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