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USTransparencyHealthcareDecision: 2023-02-01

GoodRx Holdings Inc.

USD1.5M

Issued by Federal Trade Commission (FTC) on 2023-02-01

What happened

The FTC fined GoodRx $1.5 million in the agency's first-ever enforcement action under the Health Breach Notification Rule. GoodRx, a popular prescription drug discount platform, shared users' sensitive personal health information — including medications they searched for and purchased, health conditions, and personal contact information — with advertising companies including Facebook, Google, and Criteo without users' knowledge or authorization. Despite prominently featuring a 'HIPAA' badge on its website and app, GoodRx was not actually a HIPAA-covered entity. The company used tracking pixels and SDKs that transmitted health data to these advertising platforms, which then used the information to target users with health-related advertisements.

Articles violated

Health Breach Notification Rule 16 CFR Part 318FTC Act §5(a)

Lessons learned

Digital health apps that are not HIPAA-covered entities are still subject to FTC enforcement for health data misuse. Displaying a HIPAA badge without being HIPAA-covered is deceptive. The Health Breach Notification Rule applies to non-HIPAA entities handling health data. Companies must audit all tracking technologies (pixels, SDKs) to understand exactly what data is being shared with third parties. Health-adjacent businesses should assume that the FTC will enforce health data protections even outside HIPAA's scope.

Source

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Disclaimer: This summary is for informational purposes only and does not constitute legal advice. Refer to the original decision for complete details.

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