Telemedicine company GoodRx has been accused of illegally sharing data with Google, Facebook and other companies to promote drugs more effectively.
The Federal Trade Commission (FTC) filed an official complaint against the Santa Monica, California, website on Wednesday. The site allows users to compare drug prices from various pharmacies and find discount coupons.
This would have shared information about what prescriptions a person had and any health issues they may have with ad platforms and helped them better target ads to potential customers.
The company agreed to pay a $1.5 million fine if the proposed federal order is approved. A Justice Department order also prohibits him from sharing sensitive data and asks Google, Facebook and others to delete any GoodRx data they currently have.
The FTC filed a complaint against GoodRx alleging the company shared data it collected from customers using its platform with advertisers such as Google and Facebook (file photo).
GoodRx reportedly took the information it collected from customers hoping to get drug coupons and used it to target its Facebook page with ads
This isn’t the first time a popular online health tool has been caught selling data to Facebook. In 2021, period tracking app Flo was approved for sharing data with advertisers.
“Digital health companies and mobile apps should not be allowed to monetize consumers’ highly sensitive and personally identifiable health information,” said Samuel Levine, director of the FTC’s Consumer Protection Agency.
“The FTC announces that it will use all of its legal authority to protect American consumers’ sensitive information from misuse and illegal exploitation.”
The agency says 55 million consumers have used GoodRx since early 2017.
The website reportedly used data from customers who used its services and pharmacies to track when the coupons were used – and what medication each consumer took.
The FTC accused GoodRx of falsely promising that it would never use information it collected from users.
“GoodRx has repeatedly violated that promise by sharing confidential personal health information — including users’ prescription medications and personal health care — with third-party advertising companies,” the agency wrote.
Amazon launches generic drug subscription service for US Prime members
For $5 a month, people can fill as many prescriptions as they need from 55 generic drugs
It would also have used the information it collected to identify people’s personal Facebook profiles and target them with ads.
The FTC cites an example from August 2019 where patients who purchased heart disease or blood pressure medication uploaded their email address and phone number to Facebook to be identified.
After GoodRx was found, GoodRx targeted those users with more ads for those drugs—or drugs similar to them.
GoodRx also allowed its advertising partners to use data for their own internal purposes — meaning the scope of data use extends far beyond just one company.
“We disagree with the FTC’s allegations and admit no wrongdoing,” the company said in a statement.
Completion of the settlement allows us to avoid the time and expense of protracted litigation. We believe that the requirements described in the comparison will not materially affect our business or our current or future business.”
FTC Commissioner Christine Wilson wrote in a statement that she wants the company to face tougher penalties.
“Health data in the hands of the wrong parties can be used in harmful ways – for example, think of a data broker compiling a list of Alzheimer’s patients that a scammer then uses to defraud them,” she wrote.
“…I would have supported a higher civil penalty. Existing studies make it clear that consumers attach great importance to their personal health information.
“I have reason to believe that GoodRx made a deliberate decision to release intimate health information without consent, in direct violation of the assurances it gave to consumers.”
Source link
Crystal Leahy is an author and health journalist who writes for The Fashion Vibes. With a background in health and wellness, Crystal has a passion for helping people live their best lives through healthy habits and lifestyles.
