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technologyHealthcare · 2024

Cerebral Inc.

Cerebral, a mental health telehealth company, was fined $7 million for sharing sensitive mental health information of approximately 3.2 million users — including conditions such as depression, anxiety, ADHD, and suicidality disclosed in intake questionnaires — with Meta, Google, TikTok, and other advertising platforms through tracking pixels and social media login features, violating its explicit privacy promises. The FTC also found Cerebral's subscription cancellation process was designed to make it deliberately difficult for patients to discontinue care, constituting an unfair practice. Cerebral was prohibited from using or disclosing health data for advertising.

Fine Imposed€6.4M
Authority

FTC-US

Regulation

FTC Act Section 5 — Unfair or Deceptive Acts or Practices

Max fine$51,744 per violation per day for post-order violations; initial enforcement via consent orders without direct fines
Statusactive
Key Takeaways
  • Mental health telehealth companies that place advertising tracking infrastructure on any patient-facing surface — including intake forms — face existential FTC enforcement risk, particularly when sensitive diagnostic information is captured and transmitted to advertising platforms.