Penalty Amount
$1,500,000
Consumers Affected
55,000,000
The FTC settled with GoodRx for sharing consumers' sensitive prescription and health information with Facebook, Google, and other third parties for advertising without consent, and for failing to report these unauthorized disclosures as required by the Health Breach Notification Rule. GoodRx will pay a $1.5 million civil penalty and is permanently barred from sharing user health data for advertising.
GoodRx must pay a $1.5 million penalty. It is permanently prohibited from sharing user health information with third parties for advertising. For any other sharing, it must obtain users' affirmative express consent. The company must direct third parties to delete the shared health data, inform consumers about the breaches, implement a comprehensive privacy program, limit data retention, and publicly post its data retention schedule.
In-house legal teams should review all agreements involving the handling of consumer health data, including vendor contracts with advertising platforms (e.g., Facebook, Google), customer terms of service, and data processing agreements. Specific clauses to scrutinize are those governing data sharing, consent mechanisms for advertising, breach notification procedures, and restrictions on the use of sensitive health information. Changes may be required to explicitly prohibit sharing user health data for advertising without prior opt-in consent, mandate prompt breach reporting under the Health Breach Notification Rule, and ensure all third-party data transfers comply with health privacy regulations.
Entity
GoodRx Holdings Inc.
Also known as: GoodRx
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/02/ftc-enforcement-action-bar-goodrx-sharing-consumers-sensitive-health-info-advertising
goodrx complaint for permanent injunction civil penalties an
/system/files/ftc_gov/pdf/goodrx_complaint_for_permanent_injunction_civil_penalties_and_other_relief.pdf
goodrx stipulated order for permanent injunction civil penal
/system/files/ftc_gov/pdf/goodrx_stipulated_order_for_permanent_injunction_civil_penalty_judgment_and_other_relief.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"GoodRx Holdings Inc."
"pay a $1.5 million civil penalty"
"sharing sensitive personal health information—including its users’ prescription medications and personal health conditions—with third party advertising companies and advertising platforms like Facebook, Google, and Criteo"
"failed to notify consumers, the FTC, and the media about the company’s unauthorized disclosure of individually identifiable health information"
"prohibits the company from using manipulative designs, known as dark patterns, to obtain users’ consent"
"violating the Health Breach Notification Rule"
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