United States of America: Announced proposed settlement against Cerebral over alleged misuse of sensitive data

On 15 April 2024, the Federal Trade Commission (FTC) and the Department of Justice (DoJ) jointly proposed a settlement order against the telehealth company Cerebral, Inc. The settlement was initiated following a complaint alleging that Cerebral shared sensitive consumer data and had misled customers about its cancellation policies. The proposed settlement, which is currently awaiting court approval, requires Cerebral to implement changes to its data security and user cancellation processes. The proposed settlement mandates Cerebral to pay over USD 7 million. The settlement requires Cerebral to simplify the process for service cancellation, addressing past complaints about the complexity and delay in terminating services. Additionally, the company must now maintain a comprehensive data security program, clearly disclose data handling practices, and seek user consent before data sharing. If approved by a court, this settlement will also result in financial compensation for affected consumers.