New York Attorney General Letitia James has secured $1.5 million from 4K Apps, Inc., a digital marketing company, for allegedly operating deceptive websites that misled New Yorkers seeking mental health services, substance abuse treatment, and senior living facilities.
The Office of the Attorney General (OAG) alleged that 4K Apps ran numerous websites with directories of healthcare facilities across the state, listing phone numbers that directed callers to 4K Apps’ clients instead of the actual facilities.
“It is illegal – and incredibly cruel – to trick New Yorkers who may be in the middle of a mental health crisis and searching for care just to make a profit,” said Attorney General James. “No New Yorker should have to endure delays when trying to get in touch with healthcare providers because of misleading information on the internet.”
The OAG claimed 4K Apps created dozens of websites claiming to help consumers find healthcare services but displayed phone numbers leading to its clients' call centers. These call centers often answered generically as “intake,” causing confusion among consumers who believed they were contacting listed facilities, James claimed.
Since August 2020, 4K Apps operated at least six mental health sites, over 20 substance abuse sites, and at least 20 assisted living sites. The misleading information impeded New Yorkers' search for appropriate local services and caused them to miss out on suitable treatment options, James claimed.
As part of the settlement with OAG, 4K Apps will pay $1.5 million and implement changes to its websites.
Recent James actions include settlements with Cameo's owner for allegedly undisclosed paid endorsements, JUUL for allegedly deceptive marketing tactics targeting underage users, major wireless carriers for allegedly deceptively marketing service plans, and Northwell Health for allegedly misleading Covid-19 testing site advertisements.
This investigation was handled by Assistant Attorney General Laura Mumm, Special Enforcement Counsel Jordan Adler, Deputy Bureau Chief Clark Russell under Bureau Chief Kim Berger’s supervision within the Bureau of Internet and Technology. The Division for Economic Justice is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.