What Does the FTC’s $7M Fine Against Cerebral Mean for the Industry?

This week, the Federal Trade Commission fined virtual mental health startup Cerebral $7 million for mishandling sensitive health data and misleading consumers about cancellation policies. Cerebral agreed to the fine, along with new restrictions on using health data for advertising. The company has faced criticism for privacy concerns and legal issues, including a former executive claiming they were fired for questioning prescribing practices. Cerebral admitted to sharing data of 3.1 million users without proper consent. The FTC’s complaint also addressed misleading cancellation policies. The industry must now focus on stricter data privacy practices to avoid similar fines and investigations.

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