FTC Fines Mental Health Startup Cerebral $7 Million for Major Privacy Violations
Apr 16, 2024
Privacy Breach / Regulatory Compliance
The U.S. Federal Trade Commission (FTC) has ordered mental telehealth company Cerebral from using or disclosing personal medical data for advertising purposes. It has also been fined more than $7 million over charges that it revealed users' sensitive personal health information and other data to third-parties for advertising purposes and failed to honor its easy cancellation policies. "Cerebral and its former CEO, Kyle Robertson, repeatedly broke their privacy promises to consumers and misled them about the company's cancellation policies," the FTC said in a press statement. While claiming to offer "safe, secure, and discreet" services in order to get consumers to sign up and provide their data, the company, FTC alleged, did not clearly disclose that the information would be shared with third-parties for advertising. The agency also accused the company of burying its data sharing practices in dense privacy policies, with the company engaging in decept...
