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LEGAL NEWSLINE

Friday, November 15, 2024

Plastic surgeon fined $5M over manipulated consumer ratings

State AG
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Attorney General Bob Ferguson | Ballotpedia

Allure Esthetic and Dr. Javad Sajan have been ordered to pay $5 million following a consumer protection lawsuit initiated by Attorney General Bob Ferguson. The Seattle-based plastic surgery practice was found to have manipulated online reviews and threatened patients with illegal non-disclosure agreements (NDAs) to enhance its reputation.

The consent decree, which resolves the lawsuit filed in U.S. District Court for the Western District of Washington, mandates Allure to pay approximately $1.5 million in restitution to around 21,000 affected consumers. Recipients will receive letters from the Attorney General's Office along with checks ranging from $50 to $120 based on individual circumstances.

In addition to financial restitution, Allure is required to remove any misleading or false information from its website, including fake positive reviews and altered before-and-after photographs. These measures are part of broader reforms aimed at rectifying the company's business practices.

The resolution follows a ruling by U.S. District Court Judge Ricardo S. Martinez that deemed Allure’s NDAs illegal for restricting patients from posting negative reviews about their experiences.

"Writing a truthful review about a business should not subject you to threats or intimidation," said Ferguson. "Consumers rely on reviews when determining who to trust, especially services that affect their health and safety."

Ferguson’s lawsuit, filed in December 2022, accused Allure of artificially inflating its ratings on platforms like Yelp and Google through fake positive reviews while suppressing genuine negative feedback. Patients were forced into signing NDAs under threat of legal action if they posted unfavorable reviews.

Evidence uncovered during the investigation revealed that Dr. Sajan had personally emailed fake reviews to a foreign contractor for payment. Additionally, Allure rigged local “best doctor” competitions by paying staff and contractors to vote multiple times for Sajan as the top plastic surgeon.

The deceptive practices extended beyond online manipulation; Allure edited before-and-after photos to exaggerate procedure results and retained rebates meant for patients.

The lawsuit cited violations of several laws including the state Consumer Protection Act (CPA), Health Insurance Portability and Accountability Act (HIPAA), and the federal Consumer Review Fairness Act (CRFA). The court previously ruled that Allure’s NDAs violated CRFA provisions protecting consumers' rights to post truthful reviews.

Today's resolution allocates $1.5 million for consumer restitution while the remaining funds will cover attorney fees, investigation costs, future monitoring, and enforcement activities by the Attorney General's Office.

Patients coerced into signing illegal NDAs will each receive $50, while those who paid non-refundable consultation fees before signing will get $120 as a refund plus interest. Affected consumers will be notified via letters accompanying their restitution checks.

Assistant Attorneys General Matt Geyman, Camille McDorman, Zorba Leslie, Alex Kory, Bret Finkelstein, Ben Brysacz, Rabi Lahiri; Investigator Victoria Suner; Paralegals Miranda Marti and Christopher Kiefer managed the case for Ferguson's office.

Before Ferguson's intervention, Allure prominently displayed inflated ratings on its website claiming Dr. Sajan was “Ranked #1 Plastic Surgeon in Seattle.” The investigation revealed these ratings were falsely boosted through deceptive practices starting in 2017 when patients were required to sign pre-service NDAs prohibiting them from posting negative reviews under threat of monetary penalties.

These pre-service NDAs were used until March 2022 but were ruled illegal by federal court in April 2024 alongside other restrictive agreements offered as settlements for removing negative posts under threat of severe penalties.

Consumers are encouraged to report any businesses attempting similar suppression tactics or engaging in deceptive practices by filing complaints with the Attorney General’s Office at atg.wa.gov/file-complaint.

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