[co-author: Stephanie Kozol]
On April 14, 11 state attorneys general reached a $500,000 bipartisan settlement with telehealth company Visibly, Inc. over violations of the states’ consumer protection statutes and health and safety laws. The AGs alleged that Visibly advertised, marketed, promoted, offered for sale, and sold its online vision tests to customers in a manner that violates states’ laws. Specifically, the AGs allege that Visibly:
- Sold the tests without FDA-required clearance or approval;
- Made unsubstantiated, false, or misleading advertising or marketing claims, including claims about the tests’ accuracy and safety; and
- Made unfair and/or deceptive representations about customer satisfaction rates and guarantees, including 100% satisfaction offers or money-back guarantees
As part of the settlement, Visibly must follow the necessary laws and regulations by obtaining FDA approval for all of its products before marketing and selling them to consumers, as well as refrain from making any claims about the safety or effectiveness of its products compared to those offered by doctors’ offices without possessing reliable scientific evidence to substantiate such claims. Visibly must also disclose that the company’s online vision test does not replace an in-person comprehensive eye examination and encourage consumers to seek exams to determine overall eye health. Lastly, the company must clearly label products not endorsed by an approved medical provider.
Why It Matters
This latest coordinated effort by 11 states (Illinois, Kentucky, Mississippi, Nebraska, Nevada, Pennsylvania, South Dakota, Texas, Vermont, Washington, and Wisconsin) demonstrates the continued bipartisan focus on the health care technology industry and state AGs’ continued scrutinization of companies that jeopardize their constituents’ health and well-being.
