Cerebral set to pay $7M over alleged patient data sharing

The Department of Justice (DOJ) and Federal Trade Commission proposed telehealth company Cerebral pay a total of $7 million for its alleged sharing of patient data and deceptive business practices in violation of the FTC Act.

Cerebral was ordered to pay $5 million in consumer redress and a $10 million civil penalty, which was suspended to $2 million based on the company’s limited ability to pay, the DOJ announced in a press release Monday.

The order, pending approval by the U.S. District Court for the Southern District of Florida, requires the company to cease misusing and improperly disclosing patient information, misrepresenting its data privacy or security practices, and misrepresenting its cancellation practices.