FTC Signals New Era of Enforcement with $1.5 Million Penalty for Unauthorized Sharing of Health Data

Manatt Health February 2, 2023
Alice B. Leiter, Brandon P. Reilly, Randi Seigel

The Federal Trade Commission (FTC) announced yesterday that it has brought its first-ever enforcement action under its Health Breach Notification Rule, against digital health platform GoodRx Holdings, Inc. This follows the FTC’s previous warning, in September 2021, that health apps must comply with the rule or face penalties.

The Health Breach Notification Rule requires health apps and other devices that collect, use or share personal health information to notify customers of any breach or unauthorized use of data.

GoodRx, a telehealth and prescription drug discount provider, was accused of the unauthorized sharing of its customers’ personal health information with third-party advertising platforms and adtech vendors in violation of federal consumer protection law.

If approved by the U.S. District Court, Northern...

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