The FTC and HHS sent warning letters to approximately 130 hospital systems and telehealth providers about the privacy and security risks of using online tracking technologies, such as Meta/Facebook pixel and Google Analytics, which may impermissibly disclose sensitive health information to third parties. The agencies emphasized that such disclosures could violate HIPAA for covered entities and the FTC Act for others, citing recent enforcement actions against companies like BetterHelp and GoodRx.
In-house legal teams should review all agreements where online tracking technologies (e.g., Meta Pixel, Google Analytics) are integrated, including vendor contracts with analytics providers, customer-facing terms of service or patient portal agreements, and any data processing addendums. Specific clauses to scrutinize include data sharing provisions, consent mechanisms for collecting sensitive health information, breach notification obligations, and requirements under HIPAA business associate agreements. Changes may be needed to prohibit impermissible disclosure of protected health information (PHI) to third-party advertisers, mandate explicit patient consent for tracking, update BAAs to reflect tracking risks, and revise privacy policies to disclose tracking practices transparently. State privacy laws (e.g., CCPA) may also require modifications to opt-out rights and data retention terms.
Entity
Hospital Systems and Telehealth Providers
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/07/ftc-hhs-warn-hospital-systems-telehealth-providers-about-privacy-security-risks-online-tracking
FTC OCR Letter Third Party Trackers 07 20 2023
https://www.ftc.gov/system/files/ftc_gov/pdf/FTC-OCR-Letter-Third-Party-Trackers-07-20-2023.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"to approximately 130 hospital systems and telehealth providers"
"Health Insurance Portability and Accountability Act (HIPAA)"
"FTC Act"
"FTC’s Health Breach Notification Rule"
"impermissibly disclosing consumers’ sensitive personal health data to third parties"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.