California Attorney General Rob Bonta announced on May 7 a proposed settlement with Aspen Dental Management Inc. over allegations involving California’s corporate practice of dentistry laws and false or misleading advertising.
“As Americans face an affordability crisis, there is no room for unlawful business practices that can increase healthcare costs or harm consumers. We allege that Aspen Dental went beyond providing business support services and became involved in managing dental operations, while also using advertising that misrepresented services to consumers,” said Attorney General Bonta in a press release.1
The proposed settlement, which remains subject to court approval, includes $2 million in civil penalties and $300,000 in restitution funds.1
Regulators question Aspen Dental’s operational authority
Aspen Dental is a dental support organization that provides business management and administrative services to dental offices. Aspen Dental allegedly exceeded its administrative role by interfering with practices and providing unlawful direction, ownership and management.
Attorney General Bonta said Aspen Dental did not contract with existing dental offices but selected, purchased, staffed and advertised its offices without identifying independent dentist owners. The attorney general also alleged Aspen Dental encouraged sales of products and services through incentives, including offering dental hygienists $50 per sale of clear aligners to new patients and $100 per sale to existing patients.1
Some of the Aspen Dental advertisements claimed that its offices worked with all or no insurance, but these offices did not accept state or federally funded insurance programs. Other false representations included describing low prices for certain products or procedures without disclosing factors that could affect pricing or clarifying what services were included.
The settlement also includes injunctive terms that would put restrictions on Aspen’s ability to engage in practice ownership transactions, management authority and direct clinical operations. It would also restrict things like incentives or compensation structures tied to sales or revenue generation.2
There will also be rules around transparency, requiring Aspen Dental to clearly identify practice owner names when creating, publishing or disseminating advertisements.
Attorney General Bonta said in a press release that this settlement is intended to reinforce that patient care must remain in the hands of licensed professionals.
The settlement does not require Aspen Dental to cease operating in the state but instead would establish clear guidelines on how the company can interact with practices and clinicians going forward.
These allegations can reflect how dental support organizations administration roles end and where clinician operations begin. Dental support organizations are not intended to influence patient care or practice operations; they provide non-clinical business support.
Aspen Dental faced similar allegations in New York
This is not the first time Aspen Dental has faced allegations involving false advertising or clinician incentives.
Previously in 2015, Aspen Dental reached a settlement with New York State Attorney General over allegations that the company used improper control over dental services and products. The agreement barred Aspen from making decisions related to patient care at affiliated New York practices. The settlement also prohibited the company from using scheduling systems or compensation structures that incentivized unnecessary dental treatments.3
DentistryIQ has reached out to Aspen Dental and has not received a comment. The company has not issued a public response to the settlement or allegations.
References:
- Office of the Attorney General, State of California. Attorney General Bonta announces settlement with Aspen Dental over corporate practice of dentistry allegations. Published May 7, 2026. Accessed May 27, 2026. https://oag.ca.gov/news/press-releases/attorney-general-bonta-announces-settlement-aspen-dental-over-corporate-practice
- Office of the Attorney General, State of California. Stipulation for Judgment. Published May 7, 2026. Accessed May 27, 2026. https://oag.ca.gov/system/files/attachments/press-docs/Stipulation_for_Judgment.pdf
- Office of the Attorney General, State of New York. AG Schneiderman announces settlement with Aspen Dental Management; bars company from making patient care decisions at New York locations. Published 2015. Accessed May 27, 2026. https://ag.ny.gov/press-release/2015/ag-schneiderman-announces-settlement-aspen-dental-management-bars-company-making
