When SmileDirectClub hit the scene in 2014, it was a groundbreaking concept. They were the first company to deliver customized clear aligners directly to customers’ homes, giving adults a more convenient, affordable alternative to Invisalign and braces. Customers loved it, and the model inspired a new wave of at-home aligner services like Byte and NewSmile.
Fast forward ten years. SmileDirectClub has filed for bankruptcy and is no longer serving customers. So what happened? Here’s a detailed breakdown of why SmileDirectClub failed, where that leaves customers, and what it means for the at-home clear aligner industry.
SmileDirectClub shutting their doors might seem surprising, given the company’s history of success. The at-home model they pioneered was an instant hit with adults looking to save money on orthodontic treatment. It used molds or scans of a patient’s teeth to create a series of clear aligners that could correct mild-to-moderate cases of crowding and spacing, plus some limited bite issues—and treated more than one million people between 2016 and 2023.
During that seven-year stretch, they consistently introduced forward-thinking concepts like in-person teeth scan locations and aligners you only needed to wear at night, and they grew exceptionally fast. But rapid expansion comes with its own set of problems, which took a toll on SmileDirectClub’s reputation and profitability. They declared bankruptcy in November 2023, then attempted unsuccessfully to restructure their significant debts before finally being ordered to liquidate in January 2024. Here’s why.
SmileDirectClub’s issues started shortly after the company went public in 2019. In an effort to expand their offerings—and to meet the skyrocketing demand for remote clear aligners during the COVID-19 pandemic—SmileDirectClub took on a significant debt burden. But after 2019’s big spike in revenue, their annual revenue dropped every year after, and by 2024, that debt had ballooned to nearly $900 million. In short, the cost structure they established during their boom simply wasn’t sustainable, and their on-the-fly attempts to redesign it simply didn’t work.
Customer reports on the BBB and other sites paint a concerning picture about some of SmileDirectClub’s practices, ones that irrevocably damaged the company’s reputation. For example, many customers said their results didn’t match what SmileDirectClub promised, or that they ended up with new issues like bite misalignments. Our understanding is that SmileDirectClub took on a high percentage of applicants, even ones with misalignments that at-home treatment couldn’t handle. This included giving SDC-affiliated dentists incentives for how many patients they approved, regardless of their conditions. Because this model couldn’t effectively treat certain cases, those paitents ended up with disappointing results.
We also saw many customer reviews that commented on SDC’s patient support team. Specifically, they noted lapses in responsiveness, pressure to purchase aligners from SDC sales staff, and refusal to honor the company’s Lifetime Smile Guarantee—which promised new aligners for free if your teeth ever shifted, despite consistent retainer use.
Customers also said SDC refused to provide refunds after initially saying they would. In fact, in June 2023, the Attorney General of Washington DC brought an action against the company, alleging that they had engaged in unfair and deceptive practices by requiring customers to sign non-disclosure agreements (NDAs) before receiving their refunds. As part of the settlement, SDC agreed to pay $500,000 and release 17,000 customers nationwide from those NDAs.
As new clear aligner companies flooded the market, they started finding ways they could improve on SmileDirectClub’s model. Byte, for example, offers intriguing new technologies, while NewSmile is more affordable and Candid introduced a hybrid model that includes remote monitoring and in-person care. As these companies expanded their market shares, they took customers away from SDC, contributing to their drops in revenue.
Over several years, SmileDirectClub found itself on both ends of costly lawsuits. This included an especially protracted one with Align Technology (the makers of Invisalign), the aforementioned one with Washington DC, and several that they enacted against other companies. These suits siphoned funds from the company while they were trying to restructure their debts, undermining their efforts and contributing to their financial woes.
In short: SmileDirectClub left them high and dry. The company canceled all new orders that hadn’t shipped yet, but didn’t issue any refunds. Customers who were in the middle of their treatment when SDC shut down can continue wearing their aligners as the instructions dictate. However, they won’t be able to complete virtual check-ins to make sure their teeth are progressing as expected, and they can’t contact customer support with questions.
SmileDirectClub suggested that these customers could go to their SDC dentist for help instead. While this seems like a good solution, those dentists likely charge fees for their services, and those fees would fall to the customer.
Many customers had also signed up for financing so they could pay off their treatment monthly, and some have reported that those payments have not stopped. The company who handles SmileDirectClub’s financing payments, Healthcare Finance Direct (HFD), says on their website, “Customers that received their aligners from SmileDirectClub, completed their treatment, and have an active payment plan with HFD should continue making payments.” However, they note that as a third-party company, they can’t help customers recoup payments they made directly to SDC.
Considering SmileDirectClub is officially out of business, it’s understandably frustrating that they would still be collecting payments from their customers and keeping deposits for aligners that were never delivered.
For many frustrated customers, this is the million-dollar question. Unfortunately, there are only a couple of options right now, but there’s no guarantee that they’ll yield refunds.
Some customers have successfully disputed the SmileDirectClub charges with their credit card companies. They claim that, after providing details about the services SDC failed to provide, the company credited their accounts. However, others reported having claims denied by their credit card companies, so it likely depends on your company and specific circumstances.
This is the company still collecting installment payments for SmileDirectClub. Some customers on forums recommended telling HFD that SmileDirectClub has violated their contract by failing to provide services, and that you will make payments only after you receive the services. On a SmileDirectClub FAQ page, HFC says, “We are currently in the process of identifying any customers who signed up for the installment payment plan and have requested a refund under the 30-day money back guarantee. We are diligently working with the other interested parties to determine how best to complete the refund transaction.”
But it appears there’s no solution in place yet. Refusing to make payments is somewhat risky, however, since it’s unclear whether HFD will send these customers to collections.
It doesn’t appear that there are currently any open class action lawsuits against SmileDirectClub, but many customers on Reddit have talked about starting them in various states. Even if a lawsuit gets rolling, though, we can’t be sure that it will succeed. Also, keep in mind that SmileDirectClub owes a lot of money to a long list of creditors, so it might be a while before a successful lawsuit yields some (if any) money for the plaintiffs.
For anyone who was unable to complete their treatment with SmileDirectClub, there are some reputable providers who can help take you to the finish line. Motto Aligners even offers a $400 discount on their MottoEssential treatment plans for any former SDC customers. It doesn’t look like other companies have similar discounts, but Byte could be another reliable option if you like the idea of remote aligner treatment.
But if the SmileDirectClub debacle has turned you off to at-home treatment altogether, visiting a dentist or orthodontist is never a bad option. They can provide trustworthy medical advice on the best treatment options for your teeth.
Not at all. If you ask us, direct-to-consumer aligner treatment offers great value for individuals who are looking to correct cosmetic alignment issues on a tight budget. Our view is that SmileDirectClub’s issues were with their structure, financial decisions, and customer support—not with the treatment model itself. Just look at companies like Byte and NewSmile, who are still providing excellent treatment and service. That said, there are definitely some lessons we can take away from the whole situation.
First off, it’s important to consult your dentist before diving into a remote treatment plan. It appears that SmileDirectClub approved many patients who may have needed more robust, in-person treatment to correct their conditions. We don’t think all at-home aligner companies do this, and the ones we recommend are more discerning in their review processes. But either way, the scans and molds these companies require can’t check for underlying conditions—so an in-person dental exam is essential for confirming your teeth are healthy enough for orthodontic treatment.
Second, customers should research companies thoroughly before committing to treatment. Reading other customer reviews is a reliable way to assess the patient experience, and be careful about signing on with companies who have recent financial difficulties. Small, independent companies always have a small risk of running into financial trouble. However, the companies we cover are generally pretty safe, since they have long track records of success and, to our knowledge, aren’t in a tight spot financially.
If you’re particularly worried about choosing a small company that might fail in the future, you may want to pick one that’s backed by a larger corporation. For example, Byte is owned by Dentsply Sirona, an extremely well-established dental supply manufacturer, and Motto falls under Aspen Dental, the largest dental network in the US.
In the end, direct-to-consumer brands should remember that quality products, dental oversight, and patient support are of paramount importance. We’ve seen plenty of disappointed SmileDirectClub reviewers say they wish they would have just paid more for a different treatment. This isn’t to say that every company with low prices is bad. Many consumers benefit from lower-priced aligner options. It just means low prices don’t mean much without quality treatment.
That’s why we’re glad to see remote companies rolling out additional safety measures and hybrid options that incorporate dentist oversight without sacrificing the affordability of at-home treatment. Options like Byte Plus, Motto, and CandidPro are great options for patients who want more robust monitoring and some hands-on care, although we still think fully remote options work well—as long as you’re a good candidate and choose a reputable company.
As we’ve mentioned, SmileDirectClub wasn’t the only company providing remote clear aligner treatment, and we think some alternatives are even better than SDC was in its prime. Here are a few options.
Byte took SmileDirectClub’s original model and threw in a few impressive innovations. For example, they claim their average treatment plan length is just 4–5 months. In your aligner package, they provide a high-frequency vibration device called HyperByte, which they claim better seats your aligners for a more comfortable aligner fit and possibly enables faster dental shifts.They offer nighttime-only treatment and 100% approval on financing. Plus, they’re backed by Dentsply Sirona, a $5 billion dental supply manufacturer, so they’re in a much better financial situation than SDC was.
Candid offers a unique blend of in-office and at-home care. You’ll start your treatment in a local dentist’s office (there are 800+ in Candid’s network), then complete most of your aligner plan at home, submitting photo check-ins every 14 days, so your dentist can collaborate with Candid to keep you on track. Candid is pricier than SmileDirectClub’s standard treatment was, but you’re paying for hands-on care and a dentist who can bring you in for additional office visits if anything goes wrong. It’s a great fit for anyone who likes the convenience of teledentistry but also wants some face-time with their dentist.
Aspen Dental launched Motto Clear Aligners in 2021 in an effort to compete on price and convenience with popular at-home services, while also providing in-person oversight by a local dentist. To get started with Motto, you’ll need to visit one of the 1,100 Aspen Dental office locations nationwide. Then, like CandidPro, you’ll use MottoMonitoring to track your progress remotely via photos you submit using their mobile app, and you’ll have follow-up office visits typically once every ten weeks. Since Motto is a product of Aspen—the nation’s largest dental network—it’s much less likely to fall into financial trouble.
Invisalign has been a giant in the clear aligner industry for over two decades, and there’s an exceptionally slim chance they’ll go under anytime soon. Its in-person care is perfect for more intensive cases of teeth and jaw misalignment, and regular office visits allow the dentist to apply supplemental attachments, elastics, and other appliances that induce more nuanced movements. Invisalign costs $3,000 to $8,000, on average, but if in-person oversight and a wide scope of treatment are your top priorities, it may be a better option for you. Plus, you’ll have plenty of one-on-one time with your dentist (typically at least once per month) to discuss any concerns.
Pursuing orthodontic treatment as an adult can feel stressful and overwhelming. At Smile Prep, we strive to make the process as easy as possible for our readers. Our guides and reviews cut the fluff and give you the information necessary to take a confident step toward your smile goals.
* Smile Prep is not affiliated with or sponsored by SmileDirectClub.Online teeth alignment services now make it possible to straighten your teeth for a fraction of the cost of braces or Invisalign. We've reviewed and ranked the top providers.
