Health Law Highlights

US Sues Telehealth Companies Over Data Sharing, Cancelation Policies

Summary of article from mHealth Intelligence, by Anuja Vaidya:

The US Department of Justice (DOJ) and the Federal Trade Commission (FTC) have filed an amended complaint against telehealth companies, including Cerebral Inc., Zealthy Inc., Gronk Inc., and Bruno Health P.A., alleging misuse of patients’ personal health data, deceptive cancellation practices, and unauthorized disclosure of sensitive data. The complaint also accuses the companies of deploying online tracking technologies for targeted advertisements without user consent. The government alleges that the companies violated the Federal Trade Commission Act (FTC Act), the Opioid Addiction Recovery Fraud Prevention Act of 2018, and the Restore Online Shoppers’ Confidence Act (ROSCA). While the claims against Cerebral have been settled, with the company agreeing to pay $5 million in consumer redress and a $2 million civil penalty, the government continues to pursue claims against the other companies and individuals involved. Cerebral has also been scrutinized for its controlled substance prescriptions and alleged “unlawful business practices”.