The Federal Trade Commission on Wednesday fined the medication discount company GoodRx $1.5 million for sharing data on its users’ medications and illnesses with companies such as Facebook and Google without permission.
“Digital health companies and mobile apps should not cash in on consumer’s extremely sensitive and personally identifiable health information,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement. “The FTC is serving notice that it will use all of its legal authority to protect American consumers’ sensitive data from misuse and illegal exploitation.”
According to the FTC’s complaint, California-based GoodRx violated federal law by sharing sensitive personal health information for years with advertising companies and platforms — contrary to its privacy promises.
“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,” GoodRx said in a statement.
It’s the first time that a proposed FTC consent order is seeking to prohibit a company from sharing user health data with third parties for advertising purposes.
The proposed order still must be approved by the federal court but could significantly affect an industry where the practice has become widespread.
