Cerebral will owe $7 million after the FTC accused it of careless data practices and sharing private patient info with third parties like TikTok for advertising purposes.
The Federal Trade Commission is proposing a $7 million fine against Cerebral, a mental telehealth firm that it says not only was careless with patients’ data but actively shared it with third parties for advertising purposes. The company and its CEO, Kyle Robertson, are also accused of lying to customers about how their data is shared and of having a misleading cancellation policy. The FTC notes that Cerebral shared the sensitive data “of nearly 3.
The agency also describes lazy security practices that enabled former employees to access patients’ confidential medical records in 2021, while “in numerous instances,” its single sign-on patient portal “exposed confidential medical files” to other patients who were signed on at the same time. Additionally, the FTC says canceling Cerebral’s services was a “complex, multi-step, and often multi-day process” and not the easy “cancel anytime” policy that Robertson and the company promoted.
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