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Regulating Psychological Wellness Grifters

1 min read

The rapid expansion of social media has transformed the delivery of psychological wellness advice, shifting mental health guidance from licensed professionals to digital influencers operating outside of traditional regulatory frameworks. As the global wellness industry surpasses $2 trillion, millions of Americans—particularly adolescents and young adults—consume mental health content from uncredentialed creators who often monetize psychological distress without professional oversight. Documented harms include misinformation about psychiatric medications, improper management of suicidality, unqualified diagnostic claims, and the migration of disciplined clinicians into unregulated “life coaching” roles.

This Article argues that state professional licensing regimes—governing psychologists, clinical social workers, professional counselors, and marriage and family therapists—represent the most promising yet underutilized mechanism for addressing psychological wellness grifters. Current statutory definitions, exemptions, and complaint-driven enforcement models were designed for brick-and-mortar clinical practice and are ill-suited to broadcast-style digital content. The Article proposes modernizing licensing statutes to expressly encompass digital therapeutic communications, narrowing exemptions that enable regulatory arbitrage, strengthening interstate enforcement coordination, and imposing mandatory disclosure requirements.

Recognizing the structural limits of state-based oversight, the Article further proposes a complementary federal registration framework modeled on the Drug Enforcement Administration’s dual federal-state regulatory system for controlled substance prescribers. Such a framework would require registration and credential disclosure for compensated psychological wellness services delivered through interstate digital commerce while preserving state authority over professional standards. By combining state licensing reform with targeted federal registration authority, this dual-enforcement approach offers a constitutionally-grounded path to restoring accountability in the digital mental health marketplace.