The proposed order, filed in the U.S. District Court for the Southern District of Florida, still requires court approval
The FTC and DOJ's complaint alleges Cerebral disclosed personal health information and other sensitive data that included pharmacy and health insurance information, birth dates and home and email addresses for nearly 3.2 million users to third parties such as social media companies TikTok, Snapchat and LinkedIn. The complaint also alleges that former Cerebral CEO Kyle Robertson and the company repeatedly broke privacy promises to consumers and misled them about their cancellation process.
“Cerebral violated its customers’ privacy by revealing their most sensitive mental health conditions across the Internet and in the mail,” FTC Chair Lina Khan said in a news release. “To address this betrayal, the Commission is ordering a first-of-its-kind prohibition that bans Cerebral from using any health information for most advertising purposes."
Cerebral's statement said the company would implement “enhanced customer protection, privacy and compliance measures."
Cerebral has endured scrutiny over its prior practice of prescribing controlled substances to treat attention deficit hyperactivity disorder, including an investigation by the Justice Department and a lawsuit from a former executive alleging unethical prescribing practices. The suit has since been settled.
Robertson was replaced as CEO in May 2022. The company has gone through three rounds of layoffs, most recently in February 2023.
