FTC Fines Cerebral $7M for Data Misuse, Misleading Policies

April 19, 2024
FTC Fines Cerebral $7M for Data Misuse, Misleading Policies
  • The Federal Trade Commission has fined Cerebral $7 million for improper handling of health data and deceptive cancellation policies.

  • Cerebral used pixel trackers to collect and share 3.2 million consumers' data without their consent, resulting in a privacy breach.

  • The FTC settlement requires Cerebral to stop using health data for most advertising and mandates a $5.1 million refund to consumers plus a $10 million civil penalty, potentially reduced to $2 million.

  • This case emphasizes the necessity for healthcare entities to comply with privacy laws and may influence future marketing and data practices in the industry.

  • Consumers are urged to take security measures such as changing passwords, enabling two-factor authentication, and setting up identity monitoring to safeguard against data breaches.

Summary based on 2 sources

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