Proposed FTC Order will Prohibit Telehealth Firm Cerebral from Using or Disclosing Sensitive Data for Advertising Purposes, and Require it to Pay $7 Million

Summary:

The Federal Trade Commission (FTC) has filed a complaint against Cerebral, Inc. and its former CEO, Kyle Robertson, alleging that they deceived consumers about their data sharing and security practices, and misled consumers about their cancellation policies. The complaint charges that Cerebral violated its customers' privacy by revealing their sensitive mental health information to third parties for advertising purposes. The company also failed to deploy adequate safeguards for sensitive data, engaged in sloppy security practices, and misled consumers about their cancellation processes. The proposed order, which requires approval by a federal court, would restrict Cerebral's use of consumer data, require the company to pay $5.1 million in refunds and a $10 million civil penalty, and prohibit the company from engaging in similar practices in the future.