In a landmark move, telehealth company Cerebral has announced that it will be restricting the use of customer health data for advertising purposes. This announcement comes after the Federal Trade Commission (FTC) issued a new order on Monday, requiring Cerebral to limit the disclosure of customers’ personal health information to third parties for ads.
The FTC’s Chair, Lina Khan, stated that Cerebral had violated its customers’ privacy by sharing sensitive mental health information online and through mail. This order marks the first time that the FTC has prohibited a telehealth company from using health information for most advertising purposes.
This development underscores the importance of protecting consumer data in the telehealth industry, especially when it comes to sensitive health information. Customers should be able to trust that their personal data is being handled securely and with respect for their privacy. The actions taken by the FTC set a precedent for other telehealth companies to prioritize consumer privacy and data protection.
In addition to this new order, Cerebral has also agreed to pay $7 million to settle charges related to the mishandling of customer data and failing to make it easy for customers to cancel their services.
The FTC’s investigation into Cerebral began in 2019, following complaints from several customers about how their personal health information was being used without their consent. The agency found that Cerebral had been using customer data for targeted advertising campaigns without obtaining proper consent or providing clear opt-out options.
This development highlights the need for greater transparency and accountability in the telehealth industry when it comes to handling consumer data. It also serves as a reminder that consumers have a right to control their own personal information and should be able to do so with ease.
Overall, this move by the FTC sets a positive precedent for other telehealth companies and underscores the importance of protecting consumer data in this rapidly growing industry.
