Cerebral set to pay $7M over alleged patient data sharing
By 
Jeff Dale2024-06-12T02:05:00
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.
Related articles
-
News BriefMobile health apps must follow FTC breach notice rule after update
Mobile health applications and similar technologies must notify customers following a data breach or risk violating the Federal Trade Commission’s health breach notification rule.
-
News BriefFTC, HHS warn hospitals over use of online tracking tech
The Federal Trade Commission and Department of Health and Human Services sent letters to approximately 130 hospital systems and telehealth providers regarding potential patient privacy violations and security risks stemming from online tracking technologies.
-
News BriefSens press telehealth firms on alleged sharing of patient data for ads
A bipartisan group of senators is leaning on three telehealth firms accused of tracking and sharing patients’ sensitive personal information with advertising platforms like Google and Facebook.
More from Regulatory Enforcement
-
News BriefDOJ targets $14.6B in health care fraud with focus on transnational crime
Emerging enforcement priorities of the U.S. Department of Justice’s health care fraud division align with the Trump administration’s emphasis on prosecuting transnational criminal organizations and ending opioid trafficking.
-
News BriefFTC raises antitrust concerns over $1.57B Circle K deal, orders divestitures
Since President Donald Trump took office, the U.S. Federal Trade Commission has yet to keep up the level of enforcement it had under previous chair Lina Khan. The agency, however, returned to antitrust action in the case of fuel stations, just in time for the July 4th holiday.
-
News BriefJudge reinstates fired CPSC commissioners in latest battle over government cuts
In May, three commissioners for the Consumer Product Safety Commission were abruptly fired by President Donald Trump and sued for their jobs shortly after. A federal judge has ruled that the commissioners should be reinstated, although it’s unclear whether that ruling may itself be reversed.