FTC Settles Misleading Personal Health Data Collection Case with PaymentsMD

By on December 4, 2014

The Federal Trade Commission (FTC) announced that PaymentsMD, LLC, a health billing company, and its former CEO, Michael C. Hughes agreed to settle charges that they failed to adequately inform consumers who registered for Patient Portal, an online medical billing portal, about the scope of personal health data collected.

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

Pursuant to the settlement, Payments MD is required to destroy any information collected pertaining to the Patient Health Report service.