
"According to a press release, Chiu's office began investigating the publication in 2023 and subsequently discovered at least one hospital paid $42,000 for a Best Hospitals badge, which was never disclosed a violation of the Federal Trade Commission Act. The press release states that also offers paid options for Featured Hospital placement; advertising on the outlet's website and in its guidebook; and access to micro-data relating to rankings."
"Consumers use these hospital rankings to make consequential health care decisions, but at the outset of our investigation the company did not disclose as required by U.S. law that it received payments from the hospitals it ranked, including licensing fees for permission to display a Best Hospitals' badge, Chiu says. My office is committed to defending consumers' best interests, so I'm glad we were able to reach a settlement that ensures greater transparency in U.S. News's financial disclosures."
U.S. News will disclose which hospitals pay for placements on its Best Hospitals list following an investigation by California Attorney General David Chiu's office. The investigation began in 2023 and revealed at least one hospital paid $42,000 for a Best Hospitals badge that was not disclosed, a potential violation of the Federal Trade Commission Act. U.S. News also offered paid Featured Hospital placement, advertising packages, and access to micro-data. The outlet initially failed to respond, received subpoenas in January 2024, filed and later lost a lawsuit, and agreed in April to add disclaimers and improve financial disclosures.
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