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Seattle Plastic Surgery Practice to Pay $5 Million to Resolve False Review and Illegal NDA Lawsuit

A Seattle, WA, plastic surgery practice has been ordered to pay a financial penalty of $5 million to the Office of the Washington Attorney General to resolve alleged violations of the Health Insurance Portability and Accountability Act (HIPAA), Washington Consumer Protection Act (CPA), and the federal Consumer Review Fairness Act (CRFA).

Dr. Javad Sajan, the owner of Allure Esthetic, has offices in Washington and other states and provides surgical and non-surgical plastic and cosmetic surgery procedures operating as Allure Esthetic, Gallery of Cosmetic Surgery, Seattle Plastic Surgery, Alderwood Surgical Center, Northwest Nasal Sinus Center, and Northwest Face and Body.

Washington Attorney General, Bob Ferguson, filed a lawsuit against Allure Esthetic and Dr. Sajan alleging the practice falsified online reviews to inflate the plastic surgeon’s reputation. According to the lawsuit, between 2017 and 2019, Dr. Sajan forced patients to sign illegal non-disclosure agreements that prohibited them from posting any negative online comments about Allure Esthetic. Those non-disclosure agreements were only provided after a $100 non-refundable consultation fee was paid. The non-disclosure agreements also required some patients to waive their HIPAA rights to allow the practice to respond to negative reviews using their personal health information.

Patients who were unhappy with their treatment and posted negative reviews were offered money and free services if they agreed to take down their reviews, and were threatened with fines if they posted negative reviews in the future. Some patients were sued when they refused to take down their truthful reviews. Dr. Sajan was also accused of instructing employees to set up fake email accounts posing as patients to post fake, positive reviews on sites such as Yelp and Google, and altering before and after photographs before they were added to the company’s social media accounts. Dr. Sajan was also accused of rigging “best doctor” competitions hosted by local media outlets, and applying for and retaining tens of thousands of dollars in rebates that should have been provided to patients.

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In April 2024, a federal judge ruled that Allure’s non-disclosure agreements violated the Consumer Review Fairness Act (CRFA), which protects consumers’ rights to post truthful reviews about a business, and that Allure Esthetic’s practices violated HIPAA and the CPA. The consent decree issued by the U.S. District Court for the Western District of Washington requires Allure to pay $1.5 million in restitution to around 21,000 Washington residents. Each of those individuals will receive a check for $50 or $120, based on their circumstances. If they were forced to sign a non-disclosure agreement they will receive $50, and if they paid the non-refundable fee, they will receive $120 as a refund of the fee plus interest.

Allure is required to notify all individuals by mail that they will be receiving a check as a result of the Attorney General’s lawsuit and that they have been freed from the terms of their illegal NDAs. Allure must also send them their checks along with a letter from the Attorney General’s Office. The remaining $3.5 million of the settlement will go to the Attorney General’s Office to cover attorneys’ fees, investigation and prosecution costs, future monitoring, and enforcement of the decree and Washington’s consumer protection laws.

Allure is also required to conduct an audit of all review sites and request the removal of any review that Allure was involved in creating, posting, or shaping, and must remove any misleading photographs from its social media platforms. Allure is prohibited from altering future before and after photographs and using and attempting to enforce illegal non-disclosure agreements. Allure must also pay for a third-party forensic accounting company to conduct a full audit of its consumer rebate program to identify all consumers owed rebates that were illegally claimed by Allure.

“Writing a truthful review about a business should not subject you to threats or intimidation,” said AG Ferguson. “Consumers rely on reviews when determining who to trust, especially services that affect their health and safety. This resolution holds Allure accountable for brazenly violating that trust — and the law — and ensures the clinic stops its harmful conduct. We will take action against any business that attempts to silence and intimidate honest Washingtonians.”

Author: Steve Alder is the editor-in-chief of The HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered in The HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has 10 years of experience writing about HIPAA and other related legal topics. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics. Steve shapes the editorial policy of The HIPAA Journal, ensuring its comprehensive coverage of critical topics. Steve Alder is considered an authority in the healthcare industry on HIPAA. The HIPAA Journal has evolved into the leading independent authority on HIPAA under Steve’s editorial leadership. Steve manages a team of writers and is responsible for the factual and legal accuracy of all content published on The HIPAA Journal. Steve holds a Bachelor’s of Science degree from the University of Liverpool. You can connect with Steve via LinkedIn or email via stevealder(at)hipaajournal.com

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