Cerebral, a telehealth company that provides counseling services and prescriptions for mental health conditions, has agreed to limit the use of consumer health data for advertising purposes. This decision comes after the Federal Trade Commission announced a new order on Monday. In addition to this, Cerebral has also agreed to pay $7 million to settle charges related to disclosing customers’ personal health information to third parties for ads and not making cancellations easy for customers.
The FTC Chair Lina Khan stated that Cerebral violated its customers’ privacy by sharing sensitive mental health conditions online and through mail. As a result, the new order prohibits Cerebral from using health information for most advertising purposes, marking a significant step in protecting consumer data privacy.
This development highlights the importance of safeguarding consumer health information and ensuring that companies follow through on their promises to protect customer data. Cerebral’s agreement to limit the use of health data for advertising purposes and pay a settlement demonstrates a commitment to protecting customer privacy and complying with regulations set forth by the FTC.
The decision made by Cerebral is an important step towards protecting consumer privacy rights in the digital age. With more companies collecting and using personal data, it is crucial that regulations are put in place to ensure that this information is used ethically and with consent from individuals. The FTC’s new order will help protect consumers from having their sensitive health information shared without their knowledge or consent.
