April 16, 2024 at 05:44PM
The U.S. Federal Trade Commission reached a $7,000,000 settlement with telehealth firm Cerebral over mishandling sensitive health data. Cerebral notified 3.2 million individuals of a data breach due to tracking pixels usage. The FTC complaint also involves former CEO Kyle Robertson. The settlement includes refunds for impacted customers, a $10M penalty, data sharing restrictions, and privacy program implementation.
Based on the meeting notes, the key takeaways are:
1. The U.S. Federal Trade Commission (FTC) has reached a settlement with telehealth firm Cerebral, in which the company will pay $7,000,000 over allegations of mishandling sensitive health data.
2. Cerebral has been charged with disclosing consumers’ personal health information to third parties for advertising and not adhering to its cancellation policies.
3. The proposed settlement includes a refund of $5,100,000 to impacted customers, a $10M civil penalty (limited to $2,000,000 due to Cerebral’s inability to pay the full amount), and various requirements such as a permanent ban on sharing health data with third parties for marketing and advertising purposes, a comprehensive data security and privacy program, and more.
4. The former CEO, Kyle Robertson, has not agreed to a settlement, and the court will decide about his charges.
These are the key points from the meeting notes regarding the settlement reached with Cerebral by the FTC.