SmileDirectClub (NASDAQ:SDC) news for Monday about a new bill passing in California has SDC stock down.
The problem with this new bill is that it extends the Dental Board of California’s work until Jan. 1, 2024. That gives the organization control over all dental work in the state. The bill also includes details about how customers can report complaints to the company.
All of this is bad SmileDirectClub news because the company has been facing trouble from regulators about its practices. SDC offers clear dental braces to customers via mail. This has it bypassing transnational methods of moving teeth, which isn’t sitting well with some members of the dental community.
It’s also worth pointing out that this new bill allows customers of the company to make complaints to the Dental Board of California. This holds true even if these customers have signed non-disclosure agreements with SDC.
California Gov. Gavin Newsom did release a statement after signing the bill. In it, he criticized certain parts about the bill. SmileDirectClub was pleased with these criticisms, but lamented that he went on to sign the bill anyway, reports MarketWatch.
Here’s what SmileDirectClub has to say about the bill.
“While this bill does not preclude SmileDirectClub’s continued operations in California, it will create unnecessary hurdles and costs to Californians that need care but struggle to afford it. The undebated, clinically unsupported, and ill-advised policy changes that are included in this bill – a bill that was intended to reauthorize the Dental Board of California until last-minute policy additions were added – have created arbitrary barriers to technological innovation.”
SDC stock was down 12.85% when the markets closed on Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.