MedCity News April 17, 2024
This week, the FTC ordered Cerebral to pay a $7 million fine, accusing the company of mishandling users’ sensitive health data and misleading consumers about cancellation policies. Experts agree that other virtual healthcare providers need to work on their legal and compliance strategies in order to avoid a similar fate.
This week, the Federal Trade Commission hit virtual mental health startup Cerebral with a $7 million fine, accusing the company of mishandling users’ sensitive health data and misleading consumers about cancellation policies.
Cerebral agreed to pay the fine, as well as adhere to a “first-of-its-kind prohibition” that bans the startup from using any health data “for most advertising purposes.”
Cerebral’s less-than-stellar privacy track record
The startup is a mental health...
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