(a) The general assembly recognizes that consumers of substance abuse treatment have disabling conditions and that consumers and their families are vulnerable and at risk of being easily victimized by fraudulent marketing practices that adversely impact the delivery of health care. To protect the health, safety, and welfare of this vulnerable population, a service provider of alcohol and drug services or an operator of an alcohol and drug treatment facility (ADTF) shall not engage in any of the following marketing practices:

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Terms Used In Tennessee Code 33-2-423

  • Abuse: means the knowing infliction of injury, unreasonable confinement, intimidation, or punishment with resulting physical harm, pain, or mental anguish. See Tennessee Code 33-2-402
  • Alcohol and drug services: includes evaluation, treatment, residential personal care, habilitation, rehabilitation, counseling, or supervision of persons with substance use disorder, or services to persons designed to prevent substance use disorder that either receive funds from the department of health or assess fees for services provided. See Tennessee Code 33-2-402
  • Contract: A legal written agreement that becomes binding when signed.
  • Facility: means a treatment resource, rehabilitation center, hospital, community mental health center, counseling center, clinic, group home, halfway house or any other entity that provides a mental health, service or an alcohol and drug abuse prevention and/or treatment facility. See Tennessee Code 33-2-402
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Service: includes any activity to prevent, treat, or ameliorate mental illness, serious emotional disturbance or alcohol or drug use which includes diagnosis, evaluation, residential assistance, training, habilitation, rehabilitation, prevention, treatment, counseling, case coordination, or supervision of persons with mental illness, alcohol and drug abuse issues and serious emotional disturbances. See Tennessee Code 33-2-402
(1) Making a materially false or misleading statement or providing materially false or misleading information about the provider’s or operator’s identity, products, goods, services, or geographical locations in its marketing, advertising materials, or media or on its website;
(2) Including on its website false information or electronic links, coding, or activation that provides false information or that surreptitiously directs the reader to another website;
(3) Soliciting, receiving, or making an attempt to solicit or receive a commission, benefit, rebate, kickback, or bribe, directly or indirectly, in cash or in kind, or engaging or making an attempt to engage in a split-fee arrangement in return for a referral or an acceptance or acknowledgement of treatment from a service provider of alcohol and drug services or ADTF; or
(4) Entering into a contract with a marketing provider who agrees to generate referrals or leads for the placement of patients with a service provider of alcohol and drug services or in an ADTF through a call center or a web-based presence. This subdivision (a)(4) shall not apply if the service provider of alcohol and drug services or the operator of the ADTF discloses to the prospective patient, so that the patient can make an informed healthcare decision, in clear and concise language and instructions that allow the prospective patient to easily determine whether the marketing provider represents specific service providers or recovery residences that pay a fee to the marketing provider, and the identity of such service providers of alcohol and drug services or ADTF.
(b) In addition to any other punishment authorized by law, a person or entity that knowingly violates this section is subject to suspension or revocation of the person’s or entity’s license pursuant to § 33-2-407 and the imposition of civil penalties under § 33-2-409.
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