FTC fines GoodRx $1.5M for sharing data

Feb. 1 (UPI) — The Federal Trade Commission has proposed banning GoodRx from sharing customer health data for promotional purposes.

GoodRx has agreed to pay a $1.5 million fine for sharing health information with Facebook, Google, Criteo and other companies from at least 2017 to 2019. Press release FTC said.

Under an order filed by the Department of Justice on behalf of the FTC, GoodRx is prohibited from sharing health data with other third parties for advertising purposes.

“Digital healthcare companies and mobile apps should not profit from extremely sensitive and personal consumer health information,” said Samuel Levin, director of the FTC Consumer Protection Bureau. “The FTC advises that it will use all of its legal powers to protect sensitive US consumer data from misuse and unlawful exploitation.”

According to a press release, this is the first time such a procedure has been proposed under the Illness Notification Rules, which were put into effect in 2009. The rule requires those with access to personal medical records to notify patients and clients or, in some cases, the media in the event of a data breach.

The FTC alleges that GoodRx did not notify customers that their data, including a list of customers who were taking certain medications such as heart and blood pressure medications, was shared without permission.

The release also alleges that GoodRx misrepresented its compliance with the Health Insurance Portability and Accountability Act by displaying a seal indicating that it is compliant and customer health information remains confidential.

Going forward, GoodRx must ask for consent before sharing medical information, according to the FTC.

FTC Commissioner Christine Wilson said she would have supported a larger civil penalty in her assertion. decision. She claims the company has “significantly benefited” from the deception regarding its privacy policy, citing its recent market valuation of approximately $18 billion. The commission voted 4-0 to recommend disciplinary action to the Justice Department.

“Based on the economic literature, I am confident that a significant percentage of consumers would forego the benefits of using coupons and other GoodRx services if they were aware of data practices like the company’s sieve, an indicator that a company’s ill-gotten gains are almost certainly multiple civil fines of $1.5 million,” Wilson said.

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