The telemedicine company GoodRx is facing allegations it illegally shared data with Google, Facebook and other firms to more efficiently advertise drugs.
The Federal Trade Commission (FTC) has filed an official complaint against the Santa Monica, California-based website on Wednesday. The website allows users to compare drug prices from multiple pharmacies and helps them find coupons.
It allegedly shared information on what prescriptions a person had and what health conditions they may be suffering to advertising platforms, allowing them to target ads towards potential customers better.
The firm has agreed to pay a $1.5million penalty if the proposed federal court order is approved. A Department of Justice order will also ban it from sharing sensitive data and ask Google, Facebook and others to delete GoodRx data they currently have.
The FTC has filed a complaint against GoodRx, alleging the firm was sharing data it gathered from customers that used its platform with advertisers such as Google and Facebook (file photo)
GoodRx was allegedly using the information it gathered from customers hoping to get coupons on drugs and using it to target their Facebook page with advertisments
This is not the first time a popular online health tool has been caught selling data to Facebook. In 2021, the period tracking app Flo was sanctioned for sharing data with advertisers.
‘Digital health companies and mobile apps should not cash in on consumers’ extremely sensitive and personally identifiable health information,’ Samuel Levine, director of the FTC’s consumer protection bureau, said.
‘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.’
The agency says that 55million consumers have used GoodRx since the start of 2017.
The website was allegedly using data from customers using its services and pharmacies to track when its coupons were being used – and what drugs each consumer was using.
The FTC accused GoodRx of deceptively promising it would never use any information that it had gathered from users.
‘GoodRx repeatedly violated this promise by sharing sensitive personal health information—including its users’ prescription medications and personal health conditions—with third party advertising companies,’ the agency wrote.
It also allegedly used the information it gathered to identify people’s personal Facebook profiles and target them with ads.
The FTC cites an August 2019 example where patients who purchased heart disease or blood pressure drugs had their email and phone numbers uploaded to Facebook to be identified.
After being found, GoodRx then targeted these users with more ads for these drugs – or similar drugs.
GoodRx also allowed its advertising partners to use data for their own internal purposes – meaning the scope of data usage goes well beyond just one firm.
‘We do not agree with the FTC’s allegations and we admit no wrongdoing,’ the firm said in a statement.
‘Entering into the settlement allows us to avoid the time and expense of protracted litigation. We believe that the requirements detailed in the settlement will have no material impact on our business or on our current or future operations.’
In a statement, FTC Commissioner Christine Wilson wrote that she wanted the firm to face higher penalties.
‘Health data in the hands of the wrong entities can be used in pernicious ways — for example, consider a data broker that compiles a list of Alzheimer’s patients which a fraudster then uses to scam them,’ she wrote.
‘…I would have supported a larger civil penalty. Existing studies make clear that consumers place significant value on their personal health information.
‘I have reason to believe that GoodRx deliberately chose to disclose intimate health information without authorization, directly contravening assurances it gave to consumers.’
