The marketing practices that can turn into federal crimes, state felonies or FTC penalties for a treatment center, and a plain checklist for staying clear of them.
Addiction treatment has some of the strictest marketing rules of any business, written to stop patient brokering. Several practices that are normal in other industries are crimes here. This checklist covers them. It is general information, not legal advice, so review your own arrangements with counsel.
1. Never pay for patients
The exception for employees and contractors applies only when pay does not vary with the number of people referred or the amounts billed. That is why per-admission, per-call and per-lead pricing from a marketer is a red flag. Pay for the work: a flat fee, or media and management at set rates. We never charge per admission, per call or per lead.
2. Check your state's brokering law
States add their own. Florida § 817.505 makes patient brokering a felony, with fines up to $500,000 when 20 or more patients are involved, and Arizona § 13-3730 covers sober living homes and treatment enrollment. Laws differ by state, so check the ones where you operate and where you advertise.
3. Don't buy or sell leads
NAATP's code of ethics bars members from buying or selling patient leads, including phone calls, and from owning directory-type websites. LegitScript bars certified providers from lead-generator ties, and you need LegitScript to advertise on Google and Meta. Generate your own inquiries and own them.
4. Never borrow another center's name
In June 2025 the FTC settled with a clinic whose Google ads bid on other clinics' names, carried its own call-center number and had telemarketers pose as a central admissions hotline. The penalty was $7 million, suspended to $1.9 million, with a ban on impersonating other businesses. NAATP also bars search ads that use another center's name in the ad text.
5. Say only what is true
The Opioid Addiction Recovery Fraud Prevention Act makes unfair or deceptive marketing of substance use treatment, including referral services, a violation with civil penalties. The FTC's first case under it, against a referral network that misrepresented how it vetted centers, produced a $3.8 million judgment. Describe your levels of care, licensing, insurance and outcomes exactly as they are. NAATP requires outpatient programs with housing to label themselves clearly.
6. Keep patient data out of ad tools
HHS says tracking technology on logged-in pages generally has access to protected health information, and any vendor receiving it needs a business associate agreement or patient authorization. The updated 42 CFR Part 2 rule for substance use disorder records required compliance by February 16, 2026. Keep pixels off intake forms, portals and booking pages, and measure with call tracking.
7. Mind the geofencing laws
Washington, New York, Connecticut and Nevada restrict geofencing around health care facilities, at 1,750 to 2,000 feet; Connecticut's law covers mental health and sexual or reproductive health facilities. Fencing a competitor's facility, or a hospital, can break those laws. Target places people go before they need care, or use audience targeting instead.
The short checklist
- No pay per admission, call or lead, to anyone.
- No buying or selling leads; no directory you secretly own.
- No other center's name in your ads.
- Every claim on your site and ads is accurate.
- LegitScript certified before you run Google or Meta ads (our guide).
- Pixels kept away from patient information.
- No geofences around health facilities in restricted states.
Marketing that follows these rules can still fill beds. The plan Jarrett designed for one residential center used search, display, email and Meta, every dollar paid at set rates, and admissions-related calls averaged 156% above the starting month.
Frequently asked questions
Is it legal to pay a marketing agency per admission?
Can a treatment center buy leads or calls?
What is patient brokering?
Can we geofence a competing treatment center?
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