Loading...

FTC Settles With Billing Co. Over Health Data Collection

Written by:

at December 5, 2014

We continue to harp on issues relating to HIPAA compliance with our clients, collections of PHI (Personal Health Information), and marketing:

According to the commission, Atlanta-based PaymentsMD LLC and its former CEO Michael C. Hughes violated Section 5 of the FTC Act by using the signup process in its free patient portal billing service as a pathway to deceptively seek consumers’ consent to obtain detailed medical information about consumers.

In order to resolve the claims, the company and Hughes have agreed to destroy the sensitive data that had been deceptively collected. They are also banned from misleading consumers about the way they collect and use information, including how the data might be shared with or collected from a third party, and they must obtain consumers’ affirmative express consent before collecting consumers’ health information form a third party, according to the proposed consent order, which will now be subject to a 30-day public comment period.

“Consumers’ health information is as sensitive as it gets,” Jessica Rich, the director of the FTC’s Bureau of Consumer Protection, said in a statement Wednesday. “Using deceptive tactics to gain consumers’ ‘permission’ to collect their full health history is contrary to the most basic privacy principles.” Here’s another wakeup call for us.

Read more here

Tags:

SOBER LAW NEWS IS A LEGAL WEBSITE PROVIDING NEWS, COMMENTARY AND OPINIONS ON THE ADDICTION TREATMENT AND RECOVERY SERVICES INDUSTRIES. THE ARTICLES REPOSTED ON THIS SITE TAKE AN IN-DEPTH LOOK AT CURRENT TRENDS IN THIS DYNAMIC HEALTH CARE SECTOR AND THE LAWS THAT GOVERN ITS REGULATION AND GROWTH. OUR HOPE AND PURPOSE IS TO PROVIDE RELEVANT AND ACCURATE INFORMATION TO THE PUBLIC AND TO POLICYMAKERS THAT WILL HELP GUIDE THE PROVISION OF ADDICTION TREATMENT OUT OF THE SHADOWS AND INTO TRANSPARENT, MAINSTREAM HEALTH CARE. THE INFORMATION PROVIDED ON THIS WEBSITE IS FOR INFORMATIONAL PURPOSES ONLY AND IS INTENDED AS A PUBLIC SERVICE. ANY QUESTIONS OF A LEGAL NATURE SHOULD BE DIRECTED TO AN ATTORNEY, AND THE INFORMATION ON THIS WEBSITE IS NOT INTENDED TO REPLACE LEGAL ADVICE FROM A LICENSED ATTORNEY IN YOUR STATE. BY USING THIS WEBSITE, YOU ACKNOWLEDGE THAT YOU MAY NOT RELY UPON OR REFER TO THE CONTENTS AS BEING LEGAL ADVICE OR GUIDANCE PROVIDED BY JEFFREY C. LYNNE, ESQ., WITHOUT HIS PRIOR WRITTEN CONSENT.

Comments

Loading Disqus Comments ...

Submit a Comment

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This