On June 23, the DOJ and FTC
announced the government has obtained substantial injunctive relief, and that the department will collect $100,000 in civil penalties, from an Illinois-based healthcare corporation pursuant to a stipulated federal court order. In the complaint, the United States claimed that the corporation violated Section 5 of the FTC Act, in which the defendant engaged in unfair and deceptive acts in connection with its period and ovulation tracking mobile app. The government alleged that the corporation shared consumers’ persistent identifiers and sensitive personal information to third-party companies without user notice or consent. Additionally, the corporation allegedly failed to disclose how those third-party companies would use consumers’ personal information. The complaint also alleges the corporation failed to take “reasonable measures” surrounding data and privacy risk when they integrated third-party software into the mobile application, and that they violated the HBNR.
The order entered by the court requires that the corporation: (i) “implement a comprehensive privacy and data security program with safeguards to protect consumer data”; (ii) “hire an independent third-party to regularly assess its compliance with the privacy program for a period of 20 years”; (iii) “[is] enjoined from sharing health information with third-parties for advertising purposes, from sharing health information with third-parties for other purposes without obtaining users’ affirmative express consent, and from making misrepresentations about [the corporation’s] privacy practices”; and (iv) comply with the HBNR’s notification provisions in any future breach of Security.
