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SettlementHigh Risk

FTC Penalizes GoodRx $1.5M for Sharing Health Data for Ads

GoodRx Holdings Inc.February 1, 2023Federal Trade Commission

Penalty Amount

$1,500,000

Consumers Affected

55,000,000

Summary

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.

Remedy

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.

Monetary PenaltyInjunctionConsent DecreeData DeletionCompliance ProgramCorrective Notice

Contract Impact

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.

Contract Search Terms

health data advertising consentunauthorized disclosure clausebreach reporting requirementHealth Breach Notification Rule compliancethird-party data sharingsensitive health information protectionprescription data use restrictionconsumer health datadata processing addendumadvertising use restriction

Laws Cited

FTC ActHealth Breach Notification Rule

Violation Types

Entity Details

Entity

GoodRx Holdings Inc.

Also known as: GoodRx

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"GoodRx Holdings Inc."
Fine Amount
"pay a $1.5 million civil penalty"
Violation Types
"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"
Violation Types
"failed to notify consumers, the FTC, and the media about the company’s unauthorized disclosure of individually identifiable health information"
Violation Types
"prohibits the company from using manipulative designs, known as dark patterns, to obtain users’ consent"
Laws Cited
"violating the Health Breach Notification Rule"

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