FTC Cracks Down on Telehealth Apps and Data Sharing

The Federal Trade Commission (FTC) wants telemedicine companies to make adjustments to their data exchange practices.

FTC Cracks Down on Telehealth Apps and Data Sharing


The Commission is concerned about the fact that telemedicine companies actively collect data from their customers, but consumers of their services are not properly aware of the specifics of this procedure. The FTC has publicly stated the problem because there is currently an increase in demand for the activities of firms in this category.

Miles Plant, the FTC’s senior data privacy and security lawyer, said the ease with which citizens hand over their confidential information to firms is a cause for concern. The Commission, he said, would like to make sure that companies adhere to the principles of honesty and transparency when collecting personal data.

Earlier in March, the FTC banned BetterHelp, a provider of teletherapy, from transmitting information about the health of customers to third parties.

Nicholson Price, a professor at the University of Michigan Law School, says that the problem of the transfer of personal data is because many consumers incorrectly believe that the Law on the Portability and Accountability of Health Insurance will ensure the protection of confidential information under any circumstances. He noted that HIPAA does not apply to apps or places where patients share personal data. For this reason, there are no barriers to the transfer, sale, or licensing of this kind of data.

Currently, the growth in demand for telemedicine services is obvious and cannot be doubted. Studies show that after the coronavirus pandemic, the number of consumers of these services increased by 30%.

Clients of companies operating in the field of telemedicine face not only the problem of transferring personal data but also a very complex payment system. The payment procedure can be improved by allowing payments through the website and by introducing payment innovations.

As we have reported earlier, FTC Distributes $115 Million to Victims of MoneyGram Payment Fraud.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.