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SettlementMedium RiskMultistate

FTC and State AGs Settle with Easy Healthcare for $100K Over Health Data Sharing

Easy Healthcare CorporationMay 17, 2023Connecticut Attorney General

Penalty Amount

$100,000

Summary

Connecticut, Oregon, and the District of Columbia reached a $100,000 settlement with Easy Healthcare Corporation, the operator of the Premom ovulation tracking app, for sharing sensitive user health and location data with third parties without appropriate disclosures or user consent. The settlement requires the company to implement comprehensive privacy and security programs, obtain consent before sharing health or location data, and provide users with a method to delete their personal information.

Remedy

Easy Healthcare must implement and maintain a comprehensive privacy and information security program. Specific requirements include: collecting personal information only for legitimate purposes; making enhanced disclosures about data collection; refraining from sharing health or location information with third parties without user consent and from using health information for targeted advertising; providing a method for consumers to request deletion of their personal information; conducting due diligence and monitoring of third parties; performing a privacy risk assessment considering risks to women; and undergoing independent assessments of its privacy and data security practices.

Compliance ProgramCorrective NoticeData DeletionAudit Requirement

Contract Impact

In-house legal teams should review vendor agreements (particularly those involving SDKs or third-party data processors) and customer-facing agreements (terms of service, privacy policies) for clauses governing data sharing, user consent, and data retention. Specific clauses to scrutinize include: data sharing/license provisions (to ensure they require explicit, prior consent for sensitive health and location data), breach notification requirements (to align with mandated security programs), and data retention/deletion terms (to guarantee a user deletion method is provided). Changes may be needed to mandate granular consent for health/location data, require audits of third-party SDKs, and incorporate explicit user deletion rights and timelines.

Contract Search Terms

data sharing agreementuser consent mechanismsensitive health datalocation data sharingsoftware development kits (SDKs)data processing addendumbreach notification clausedata retention and deletion policycomprehensive privacy programopt-out rights

Violation Types

Entity Details

Entity

Easy Healthcare Corporation

Also known as: Easy Healthcare

Industry

Healthcare

Multistate Coalition

Official Sources

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$100K

The FTC charged Easy Healthcare Corporation, operator of the Premom fertility app, with deceiving users by sharing their sensitive health data with third parties for advertising without consent and failing to notify breaches as required by the Health Breach Notification Rule. Under a proposed consent decree, the company will pay a $100,000 civil penalty, be barred from sharing health data for advertising, and must implement privacy and security measures.

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