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SettlementLow Risk

FTC Orders 1Health.io to Refund $49,500 for Data Security and Deception

1Health.ioJune 1, 2023Federal Trade Commission

Penalty Amount

$49,500

Consumers Affected

2,432

Summary

The FTC settled with genetic testing company 1Health.io for failing to secure sensitive genetic and health data, deceiving consumers about data deletion, and unfairly changing its privacy policy without notice or consent. The settlement includes refunds totaling over $49,500 to 2,432 affected consumers.

Remedy

The company must provide refunds to affected consumers totaling more than $49,500.

Consumer Refunds

Contract Impact

In-house legal teams should review vendor agreements (if 1Health.io is a service provider), customer/consumer agreements, and data processing addendums. Key clauses to examine include data security obligations (ensuring they specify industry-standard protections for sensitive genetic/health data), data deletion procedures (verifying enforceable deletion guarantees and processes), privacy policy modification terms (checking for requirements around notice and consent before changes), and data inventory maintenance commitments. Potential changes needed: add explicit security requirements with audit rights, mandate verifiable deletion processes with confirmation, require advance notice and affirmative consent for policy updates, and include provisions for regular security assessments and inventory upkeep.

Contract Search Terms

data security standardsdata deletion guaranteeprivacy policy amendment clauseconsumer consent for policy changesdata inventory maintenancesensitive data protectiongenetic data processing agreementhealth information safeguardsretroactive policy change prohibitionsecurity incident response

Violation Types

Entity Details

Entity

1Health.io

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"1Health.io"
Violation Types
"left sensitive genetic and health data unsecured"
Violation Types
"deceived consumers about their ability to get their data deleted"
Violation Types
"without notifying consumers or obtaining their consent"
Violation Types
"genetic and health data"

Related Enforcement Actions

FTC

1Health.io

$75K

The FTC finalized an order against 1Health.io for failing to secure genetic data and unfairly changing its privacy policy. The company must pay $75,000 for consumer refunds, destroy DNA samples, and implement security measures. It deceived consumers about data deletion and shared data without proper consent.

FTC

Vanilla Chip LLC

$750K

The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.

FTC

RentGrow Inc.

$2.3M

The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.

FTC

Handy Technologies

The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.

FTC

Hopper Inc.

$35.0M

The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.

FTC

Publishing.com LLC

$1.5M

The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.