FTC Finalizes PaymentsMD Privacy Violations Settlement
FTC members unanimously approved a settlement with PaymentsMD and its former CEO Michael Hughes on a complaint “they misled thousands of consumers who signed up for an online billing portal by failing to adequately inform them that the company would…
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seek highly detailed medical information from pharmacies, medical labs and insurance companies.” Announced in December, the settlements were finalized Friday, after the closure of a 30-day comment period. PaymentsMD and Hughes must now destroy information collected related to the Patient Health Report service and both are banned from deceiving consumers about how information is collected and used, including information that's shared with or collected from a third party. Also under the settlement, permission must be obtained from a consumer before health information can be collected from a third party.