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FTC Settles SkyMed International for Health Data Security Failures

SkyMed International, Inc.December 16, 2020Federal Trade Commission

Consumers Affected

130,000

Summary

SkyMed International, Inc. settled FTC allegations that it failed to secure sensitive consumer data, including health information, leaving a cloud database with 130,000 records exposed to the public. The FTC also alleged that SkyMed misrepresented HIPAA compliance on its website. As part of the settlement, SkyMed must implement a comprehensive security program, undergo biennial third-party assessments, and send notices to affected consumers.

Remedy

SkyMed is required to establish and maintain a comprehensive information security program, obtain regular third-party audits, notify affected consumers about the data breach, and cease making false claims about its data security and HIPAA compliance.

InjunctionCompliance ProgramAudit RequirementCorrective Notice

Contract Impact

In-house legal teams should review all agreements involving the processing of consumer health data, including vendor contracts, customer membership agreements, and data processing addendums. Specific clauses to examine are data security provisions, HIPAA compliance representations, breach notification obligations, and audit rights. Changes may be needed to mandate robust security measures like encryption and access controls, require regular third-party assessments, ensure accurate compliance certifications, and establish clear, timely breach notification procedures to protect sensitive health information.

Contract Search Terms

comprehensive information security programHIPAA compliance representationrisk assessment requirementpenetration testing provisionnetwork monitoring obligationthird-party security assessment clausebreach notification timelineconsumer notice requirementdata encryption standardaccess control measures

Laws Cited

HIPAA

Violation Types

Entity Details

Entity

SkyMed International, Inc.

Also known as: SkyMed International

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"SkyMed International, Inc."
Laws Cited
"HIPAA"
Violation Types
"failed to take reasonable steps to secure sensitive consumer information"

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