United States of America: Federal Trade Commission and Department of Justice filed amended complaint against Cerebral over alleged deceptive and unfair practices related to privacy, data security, and subscription cancellations

Description

Federal Trade Commission and Department of Justice filed amended complaint against Cerebral over alleged deceptive and unfair practices related to privacy, data security, and subscription cancellations

On 31 May 2024, the Federal Trade Commission (FTC) and Department of Justice (DPO) filed an amended complaint against telehealth providers Cerebral and executives, its founder Kyle Robertson, as well as former executive Alex Martelli. Cerebral settled its claims, agreeing to cease misusing patient information and pay USD 5 million in consumer redress and a civil penalty judgment of USD 10 million. The settlement agreement has to be approved by the District Court. The allegations against Cerebral and its executives include violations of the FTC Act, the Opioid Addiction Recovery Fraud Prevention Act of 2018 (Opioid Act), and the Restore Online Shoppers' Confidence Act (ROSCA). These violations range from misuse of patients' health information to deceptive billing practices and suppression of negative reviews.

Original source

Scope

Policy Area
Data governance
Policy Instrument
Data protection regulation
Regulated Economic Activity
platform intermediary: e-commerce, other service provider
Implementation Level
national
Government Branch
executive
Government Body
consumer protection authority

Complete timeline of this policy change

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2024-04-15
under investigation

On 15 April 2024, the Federal Trade Commission (FTC) and Department of Justice (DPO) jointly propos…

2024-05-31
under deliberation

On 31 May 2024, the Federal Trade Commission (FTC) and Department of Justice (DPO) filed an amended…

2025-05-08
under investigation

On 8 May 2025, the Federal Trade Commission (FTC) announced it had reached a settlement with Cerebr…