Why The FTC Is Charging GoodRx With Over A Million Dollar Penalty
GoodRx is both a telehealth provider and a digital resource that assists users in seeking out the most affordable prescription prices in their area. As per the company website, GoodRx can help users save as much as 80% on their medications. However, the Federal Trade Commission (FTC) recently issued a hefty penalty to the telehealth provider of $1.5 million after the company was found to have released sensitive user data without their knowledge or permission, as per the FTC press release. Facebook and Google were among the third-party recipients who received users' personal health information.
As reported via the Associated Press, GoodRx had been using tracking pixels from third-party companies to log user health information to aid in the creation of user-personalized ads on various social media platforms and other sites. The FTC states that the company's actions go against what users were led to believe. "GoodRx deceptively promised its users that it would never share personal health information with advertisers or other third parties," the FTC explained via the press release.
GoodRx can no longer share user data for advertising purposes
In a settlement agreement, GoodRx accepted the FTC's terms that the company will no longer be able to share user information with outside parties for the purpose of advertising from here on out, as per the FTC press release.
On February 1, GoodRx issued a public response to the FTC settlement, asserting their dedication to the mindful use of user data and privacy protection. In voicing their disagreement with the FTC's allegations, the company maintained no wrongdoing on their part and stated they had addressed the issue three years prior. In the announcement, GoodRx also stated that the information provided to third parties predominantly pertained to user IP addresses and web page URL information for content purposes. They stressed that user medical records were not among the data disclosed.
In a public statement, the FTC reiterated their commitment to the safety of consumers in regards to the ethical use of digital data. "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," said Samuel Levine, head of the FTC's Bureau of Consumer Protection via the FTC press release.