The Department of Justice (DOJ) and the Federal Trade Commission (FTC) have settled with telehealth company Cerebral Inc. over allegations of data privacy violations, deceptive practices, and misleading cancellation procedures. Under the settlement, Cerebral must:
Stop unauthorized collection and sharing of patient data.
Improve data security and privacy measures.
Provide clear and fair cancellation procedures.
The settlement includes a $5 million consumer redress payment and a $10 million civil penalty, with $8 million suspended due to Cerebral’s financial constraints.
The government continues its case against Cerebral’s former CEO Kyle Robertson, former executive Alex Martelli, and other telehealth companies founded by Robertson, including Zealthy Inc. (now Gronk Inc.) and Bruno Health P.A., for similar violations. Allegations include misuse of patient data, chronic data security breaches, fake online reviews, and deceptive billing and cancellation practices.
This case highlights the DOJ and FTC's commitment to enforcing data privacy, security, and fair practices in the telehealth industry.
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