On Wednesday, the Federal Trade Commission announced a $1.5 million settlement with GoodRx Holdings, a US-based healthcare firm that sells discounted medications.
The settlement involved allegations that GoodRx did not notify its customers before it shared their personal health information with companies like Google and Facebook.
Not only is GoodRx paying the fee of $1.5 million, but it is also barred from sharing any user health data with other companies for the use of advertising. The settlement also limits how long GoodRx holds on to personal and health information and requires the company to post the retention schedule.
The company has had more than 55 million people access its website or app since 2017, the FTC announcement shared. The FTC says that GoodRx promised the users who accessed either platform that it would never share health information but did so anyway.
Samuel Levine, the director of the FTC’s Bureau of Consumer Protection, shared in a statement that consumers’ private data is not something to be sold for cash.
“Digital health companies and mobile apps should not cash in on consumer’s extremely sensitive and personally identifiable health information,” Levine said in the statement.
In a statement released following the settlement, GoodRx said the issue had been resolved three years ago, before the FTC had even begun investigating the company.
“We do not agree with the FTC’s allegations and we admit no wrongdoing. Entering into the settlement allows us to avoid the time and expense of protracted litigation,” the company said in a statement.
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