The FTC says Betterhelp shared customer data while promising it was private

The FTC Order to Order a Consumer Protection Ombudsmanship Between GoodRx and Personalized Medicine Efforts on Facebook and Instagram

The complaint alleges GoodRx shared consumer health data with Facebook, Google, Criteo, Branch, and Twilio since at least 2017, despite promising users that their information would never be disclosed to advertisers or other third parties. This information was allegedly used to target GoodRx’s users with personalized advertisements specific to their medications and health on Facebook and Instagram. The online pharmacy lied about its compliance, according to the complaint.

The FTC’s order is still subject to approval by the federal court, but should it pass, it could have a profound effect on the legality of advertising practices within the health and medical industry.

“Digital health companies and mobile apps should not cash in on consumers’ extremely sensitive and personally identifiable health information,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. The FTC will use its legal authority to protect Americans from misuse and illegal exploitation of their sensitive data.

Customers of GoodRx who receive email about prescription drug deals in the future were surprised to see something much different this week.

Still, the notice appeared to catch some customers off guard. Users took to social media to voice concern about the e-mail, with some wondering how much money the firm might have made from their health data and others swearing off using the service.

“We understand the FTC’s desire to set new precedents around consumer marketing, and we are happy to settle this matter with the agency,” BetterHelp said in a statement on its website. “This settlement, which is no admission of wrongdoing, allows us to continue to focus on our mission to help millions of people around the world get access to quality therapy.”

If the FTC’s order ends up going through, the $7.8 million would go to customers who signed up for the service between August 1st, 2017, and December 31st, 2020. There are other things that BetterHelp has to do.

The requirements would exist for the next 20 years. The FTC says that the agreement will go through a 30-day public comment period before it makes a final decision on whether to put it into effect. It’s worth noting, though, that the proposal passed the commission by a 4 to 0 vote, so it does seem to have a fair amount of support.