FTC Requires Cerebral to Limit Sharing of Consumer Data

Published:

FTC Orders Cerebral, Inc. to Restrict Use of Sensitive Consumer Data and Provide Easy Cancellation Services

The Federal Trade Commission (FTC) has cracked down on telehealth firm, Cerebral, Inc., ordering the company to tighten its data security practices and provide consumers with an easier way to cancel services. The FTC charged Cerebral with failing to protect sensitive health data by disclosing consumers’ personal information to third parties for marketing purposes and misleading consumers about its cancellation policies.

Cerebral, which offers mental health services online, collected detailed personal data from users, including medical histories, payment information, and even information about their religious or political beliefs. The company allegedly shared this sensitive data with third parties like LinkedIn, Snapchat, and TikTok without obtaining proper consent from consumers.

In addition to its privacy violations, the FTC complaint accused Cerebral of engaging in deceptive practices related to substance abuse treatment services and violating the Restore Online Shoppers’ Confidence Act by making it difficult for consumers to cancel services.

To settle these charges, Cerebral has agreed to pay over $7 million in penalties and refunds to affected consumers. The company will also be required to implement a robust privacy and data security program, ban the sharing of consumer data with third parties for marketing purposes, and provide consumers with an easy way to cancel services.

Overall, the FTC’s crackdown on Cerebral serves as a warning to telehealth companies to prioritize data security and transparency with consumers. As telehealth services continue to grow in popularity, ensuring the protection of sensitive health information must be a top priority for companies in this industry.

CHAPTER X // CYBER AWARENESS CAMPAIGN
BEYOND THE BALLROOM
[C://ME] // CHAPTER X

REQUEST THE MEDIA KIT

Tell us where to send the Beyond the Ballroom media deck. Every field is required.

We will use these details to respond to your media-kit request. Privacy Policy

Cyber Warriors Conclave Chapter X — Beyond the Ballroom

Related articles

Recent articles

Gartner report highlights AI’s impact on vulnerability management and response times

Rapid7's recent analysis of a Gartner report reveals that the integration of frontier AI into cybersecurity is accelerating the connection between vulnerabilities and potential...

Microsoft FORGE Lab identifies memory safety issues in Rust’s standard library using AI-powered tools

Microsoft’s FORGE Lab has identified several memory safety issues within Rust’s standard library, including instances where code written entirely in safe Rust can lead...

Amplifon reports data breach affecting over 1.3 million U.S. customers’ sensitive information

Amplifon, an international healthcare company based in Milan, has reported a significant data breach affecting over 1.3 million U.S. customers. The breach, which was...

CFI Financial Group’s CFIX receives in-principle approval from VARA for virtual asset services in Dubai

CFI Financial Group (CFI) has announced that its Dubai-based entity, CFIX Virtual Assets Broker & Dealer Services L.L.C.S.O.C (CFIX), has received In-Principle Approval (IPA)...