The Federal Trade Commission is suing a behavioral health company, a marketing agency and a consultant over deceptive marketing practices.
The lawsuit, filed June 24 in federal district court in Maryland, alleges Mercury Marketing, a Florida-based marketing group, created deceptive Google search advertising for Malibu Detox, and Malibu Recovery Center, two substance use disorder treatment clinics.
The FTC alleges these ads impersonated other SUD facilities users had searched for. The phone numbers listed in the advertisements directed users to Behavioral Healthcare Group of America, a call center operated by the defendants. Telemarketers told callers they worked for the facilities impersonated in Google advertising or a central SUD treatment clearing house, the FTC alleged. The telemarketers then allegedly falsely claimed clinicians recommended the defendant SUD facilities rather than the actual facilities consumers had called about in the advertisements.
Aliya Health Group, which owns several substance use disorder treatment facilities, acquired the Malibu clinics in 2023, according to the FTC’s complaint. The commission alleged Aliya continued the deceptive marketing practices after acquiring the facilities.
In a statement shared with Becker’s, a spokesperson for Aliya Health Group said the company was not accused of any wrongdoing in the FTC’s complaint.
“At the time of the transaction, no investigations or regulatory concerns were disclosed to us by the sellers. Due to the reputational harm caused by the prior operator’s misconduct, we ultimately made the decision to close the facility in 2024,” the company said. “While we are disappointed by the decision to reference our company in the filing, we are confident that we have operated with a consistent focus on clinical quality and compliance.”
Aliya Health has retained independent compliance firm to conduct ongoing audits of its digital and paid media practices, the spokesperson said.
“Aliya Health Group remains fully committed to ethical, patient-centered care and to transparent engagement with payers, regulators and the communities we serve,” the company said.
The lawsuit is similar to another case the FTC filed against SUD treatment provider Evoke Wellness, alleging it had used deceptive search marketing tactics. In June, Evoke settled the lawsuit for $1.9 million.
Becker’s has reached out to Aliya Health Group for comment and will update this article if more information becomes available.
