Just months after filing for bankruptcy, SmileDirectClub announced it was closing its global operations and discontinuing teeth straightening treatments.
This leaves existing SmileDirectClub customers with many questions and few available answers. The company no longer offers customer service support, and few details about possible refunds are yet available. Many dental organizations and orthodontists also warn patients about safety concerns arising from “direct-to-consumer” dentistry.
Here’s what you need to know.
What is the company and why is it closing?
SmileDirectClub – which has served over 2 million people since it was founded in 2014 – once promised to revolutionize the oral care industry by selling clear dental aligners marketed as a faster and more affordable alternative to braces. It sold its aligners directly to consumers through mail order and through the mail large retailers.
When SmileDirectClub stock went public in 2019, the company was valued at approximately $8.9 billion. But the stock value plummeted over time as the company proved unprofitable year after year. In 2022, SmileDirectClub lost $86.4 million.
With its stock price plunging, SmileDirectClub was forced to spend on customer acquisition to show its business could grow, said Eric Schneider, chairman of bankruptcy at law firm Wilk Auslander.
“And then you combine that with the legal battles they’ve had (and the pushback) from the orthodontic industry … all of those things together just made it difficult for them to stay competitive,” he added. “They have lost huge amounts in the last two years.”
SmileDirectClub filed for Chapter 11 bankruptcy protection in September, reporting nearly $900 million in debt. And at the end of last week, it confirmed that it was winding down after being unable to find a partner willing to bring in enough capital to keep the company afloat.
What happens to existing customers?
On a Friday FAQ regarding the termination of its operations, SmileDirectClub has confirmed that telemedicine alignment therapy is no longer available.
This leaves existing customers in the lurch. Customer orders that have not yet shipped have been canceled and the “Lifetime Smile Guarantee” no longer exists, the company said. SmileDirectClub added that Smile Pay customers are expected to continue making payments, leading to further confusion and frustration online.
Customer service support has also stopped. SmileDirectClub apologized and urged consumers to consult their local dentist or orthodontist for further treatment. The Nashville company said more details about the refund requests will arrive “once the bankruptcy process determines the next steps and additional steps customers can take.”
When contacted by The Associated Press for additional information, a spokesman said the company could not comment further.
Now that SmileDirectClub is out of business, it needs to be liquidated, Snyder noted. He said he’s skeptical about how much compensation will reach customers — but notes that people who signed up or made payments after the company filed for bankruptcy in September will likely get priority.
“Unfortunately, I think they will be unlucky… [But] if there is money, it will go to the younger customers,” Snyder said. And even when a company goes out of business, consumers still paying for services they already received will still owe that amount, he noted.
Snyder also doesn’t expect any further legal ramifications from the end of the Lifetime Smile Guarantee, for example, noting that such guarantees are “as good as the life of the company that offers them.”
It’s unclear how many active customers SmileDirectClub had before it closed, but American Association of Orthodontists president Dr. Myron Guymon speculates that tens of thousands of people could be affected.
“It must be very frustrating for those who have spent time and money on a treatment, and then all of a sudden the rug is pulled from under their feet,” Guymon said.
He and others advised these individuals to seek the care of a professionally trained orthodontist, such as those listed in AAO website.
What do orthodontists say?
Over the years, dental associations around the world have urged caution or expressed opposition to direct-to-consumer aligners—what some call DIY dentistry.
These types of aligner treatments do not require in-person visits to a dentist or orthodontist, but typically require consumers to take molds of their teeth or a digital scan instead. This can lead to key aspects of a patient’s oral condition being overlooked and potentially lead to health consequences, some experts say.
“It’s very easy to cause harm if you don’t monitor the case properly,” said Dr. Thikriat Al-Jewair, chair of the department of orthodontics at the University at Buffalo. “I cannot overstate the importance of seeing an orthodontist for follow-up care. [Moving teeth] it’s a very complicated process and also very personal.”
Al-Jewair added that many former direct-to-consumer aligner patients end up coming to orthodontic offices for reevaluations. In those cases, he said, gum disease, bite problems and other issues often arise.
It is important to note that SmileDirectClub is not the only direct-to-consumer alignment provider on the market today. The treatment’s appeal and perceived benefits boil down to convenience and affordability—yet, Al-Jewair notes, older demographics research has found that the majority of patients seeking direct-to-consumer alignment came from higher economic backgrounds.
SmileDirectClub has previously clarified that each client’s treatment plan and health history is reviewed by licensed physicians, who may also request additional information or decline certain applications for the company’s teledental care. But this type of business model, which is not unique to the company, still raises concerns for AAO, Guymon noted. In addition to not requiring an initial in-person evaluation, he said, supervising physicians are not always recognized by patients.
“Our concern has always been that the lack of direct supervision, the lack of a patient-physician relationship, [and the fact] that the patient did not know who to call if he had problems, [were] not in the best interest of public health and interests,” he said.
That’s not to say there isn’t a place for telehealth in the dental world, Guymon and others said. Remote monitoring between treatments, for example, can be convenient and can alleviate some of the cost barriers of orthodontic care.
“We absolutely support teledentistry and many of our members use it, but only within certain safety guidelines,” said Trey Lawrence, AAO Vice President, general counsel and head of the association’s advocacy group. “Patients can check in with their dentist [remotely]but also to keep knowing who your dentist is and having them see you in person before starting something more permanent like orthodontic treatment.”
