Advertising and Fee Setting: Bartering and Misleading Claims
Dr. G, a psychologist in a rural Alaska town, is the only mental health provider within 100 miles. To attract clients, Dr. G advertises on a local radio station: 'Dr. G guarantees a cure for depression in 10 sessions or your money back!' Dr. G also offers a sliding fee scale but does not disclose it clearly. Dr. G accepts barter for services, including a client who offers to fix Dr. G's car in exchange for therapy. Dr. G has no written fee agreement. A client complains to the Alaska Board of Psychology about the advertising and the barter arrangement.
1. What ethical and legal issues arise from Dr. G's advertising and fee practices?
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Dr. G's advertisement violates APA Ethics Standard 5.01 (avoidance of false or deceptive statements) and Alaska regulations (12 AAC 60.200) which prohibit misleading advertising. Guaranteeing a cure is false and misleading; psychologists cannot guarantee outcomes. The 'money back' offer may also be unethical as it implies a guarantee. Dr. G must correct the advertisement. Regarding fees, APA Standard 6.04 requires that fee arrangements be clarified as early as possible. Dr. G should have a written fee agreement and disclose the sliding scale. Bartering is permitted under APA Standard 6.05 only if it is not exploitative and is culturally appropriate. In a rural setting, barter may be acceptable, but Dr. G must ensure the barter does not exploit the client and that the value is fair. Dr. G should document the barter agreement. The lack of a written fee agreement is a violation.
2. What should Dr. G do to remedy the situation?
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Dr. G should: (1) immediately cease the misleading advertisement and issue a retraction if possible; (2) develop a written fee agreement that clearly states fees, sliding scale, and barter arrangements; (3) provide this agreement to current and future clients; (4) ensure that any barter arrangement is fair and not exploitative, and document it; (5) consult with the Alaska Board of Psychology or an ethics consultant for guidance. Dr. G may also need to notify the radio station to stop airing the ad. If the Board investigates, Dr. G should cooperate. Dr. G should also review APA Ethics Standards 5 and 6 and Alaska regulations to ensure future compliance. Continuing education in ethics may be advisable.