Shopper-focused digital healthcare platform GoodRx did not notify customers that it bought their private well being data to Google, Fb and different tech corporations, the Federal Commerce Fee alleged on Wednesday.
On behalf of the FTC, the Division of Justice filed an order that prohibits GoodRx from sharing its customers’ knowledge with third events for promoting functions. Within the criticism, the FTC claimed that GoodRx violated the FTC Act and did not honor its privateness insurance policies, and the company imposed a $1.5 million penalty on the corporate. GoodRx agreed to pay the settlement however didn’t admit to wrongdoing.
Greater than 55 million individuals have visited GoodRx’s web site and cellular apps since January 2017, and the corporate frequently collects private and well being details about these customers. This data is gathered from the customers themselves in addition to from pharmacy profit managers, which let the corporate know when a affected person purchases a medicine utilizing a GoodRx coupon.
GoodRx promised its customers that it will solely share their private data with third events for restricted functions. The corporate additionally instructed its customers it will limit third events’ use of such data, and it promised to by no means share customers’ well being data with advertisers or different third events, the FTC mentioned.
The criticism asserted that GoodRx “repeatedly violated these guarantees” by sharing customers’ data with promoting corporations resembling Google, Fb and Criteo, as effectively different third social gathering tech platforms like Department and Twilio. The corporate shared its customers’ prescriptions, well being situations, contact data and cellular promoting IDs with these third events with out notifying its customers or acquiring their consent, in response to the criticism.
GoodRx additionally used the info that it shared with Fb to focus on GoodRx customers with personalised advertisements on Fb and Instagram, the FTC alleged. These advertisements have been tailor-made to customers’ particular person well being situations.
In its criticism, the FTC cited an instance from 2019 during which GoodRx compiled lists of its customers who had purchased specific drugs, resembling these treating coronary heart illness and blood stress. GoodRx then uploaded these customers’ e mail addresses, cellphone numbers and cellular promoting IDs to Fb so the tech big might establish their profiles and goal them with healthcare ads, the FTC claimed.
The criticism additionally claimed that GoodRx shared consumer knowledge with third events so they might enhance their very own operations. For instance, GoodRx would enable third events to make use of the consumer knowledge it shared with them for analysis and growth or to enhance their promoting technique, the FTC alleged.
The FTC’s order in opposition to GoodRx is the primary enforcement motion the company has exercised for its Well being Breach Notification Rule. which requires distributors of non-public well being data to inform customers and the FTC when knowledge is being shared with out customers’ consent or data.
The order — which have to be accepted by the federal court docket earlier than it goes into impact — not solely seeks to ban GoodRx from sharing consumer knowledge with advertisers, but it surely additionally requires the corporate to direct third events to delete the consumer knowledge it shared with them.
Beneath the proposed order, GoodRx agreed to pay a $1.5 million penalty for failing to report its leakage of consumer knowledge to 3rd events. However GoodRx denied wrongdoing in a assertion posted to its web site on the identical day the FTC issued its criticism.
“We don’t agree with the FTC’s allegations and we admit no wrongdoing. Coming into into the settlement permits us to keep away from the time and expense of protracted litigation. We imagine that the necessities detailed within the settlement may have no materials influence on our enterprise or on our present or future operations,” GoodRx mentioned.
Photograph: marchmeena29, Getty Photos
