FTC Announces Proposed Settlement Over Fertility App Health Data Disclosures | Practical Law

FTC Announces Proposed Settlement Over Fertility App Health Data Disclosures | Practical Law

The FTC has announced a proposed settlement with Premom mobile app developer, Easy Healthcare Corporation, over allegations that it violated the Health Breach Notification Rule and the FTC Act by misrepresenting its data handling practices and disclosing health data without the app user's consent through third-party software development kit (SDK) configurations.

FTC Announces Proposed Settlement Over Fertility App Health Data Disclosures

Practical Law Legal Update w-039-4938 (Approx. 5 pages)

FTC Announces Proposed Settlement Over Fertility App Health Data Disclosures

by Practical Law Data Privacy & Cybersecurity
Published on 18 May 2023USA (National/Federal)
The FTC has announced a proposed settlement with Premom mobile app developer, Easy Healthcare Corporation, over allegations that it violated the Health Breach Notification Rule and the FTC Act by misrepresenting its data handling practices and disclosing health data without the app user's consent through third-party software development kit (SDK) configurations.
On May 17, 2023, the FTC issued a press release announcing a proposed settlement that bans Premom Ovulation Tracker mobile app developer, Easy Healthcare Corporation, from sharing users' personal health data with third parties for advertising purposes and requires it to instruct third parties to delete any Premom app health data obtained without users' prior express consent. The order settles allegations that Easy Healthcare violated the FTC Act and the Health Breach Notification Rule (HBNR) (16 C.F.R. §§ 318.1 to 318.9).
Easy Healthcare's Premom app allows users to manage their reproductive health, including by tracking changes in weight, body temperature, and menstrual cycles. Users can directly enter their health information into the app, upload photos of ovulation tests, or import other health data by connecting Premom to third-party apps or services. To enable certain features and engage third-party marketing and analytics services, Easy Healthcare integrated software development kits (SDKs) from Google, LLC, AppFlyer, Inc., and two Chinese firms (collectively SDK Developers) into the Premom app.
According to the FTC's complaint, Easy Healthcare's third-party SDK integrations caused the Premom app to disclose users' sensitive personal information to the SDK Developers, including health information, geolocation data, and non-resettable device identifiers like IMEI numbers and MAC addresses. Notably, this action represents the first time that an FTC complaint clearly classified non-resettable device identifiers as highly sensitive personal information. The FTC claimed that Easy Healthcare's decision to use descriptive instead of anonymous titles for the SDKs' custom user interactions, for example by selecting "Logperiod-save" as the custom event name when a user records their menstruation date, also led to improper health information disclosures.
The FTC alleged that the Premom app's ongoing disclosure of identifiable, unencrypted, and unsecured user health information to third parties through the SDKs was a security breach that the HBNR required Easy Healthcare to report. However, Easy Healthcare never provided the required agency and individual notices.
The complaint also alleged that Easy Healthcare broke promises made to users in its in-app and website privacy policies, including commitments to never share health information with third parties without users' knowledge and consent and that its SDKs and third-party analytics software only identified users by IP addresses.
The complaint further claims that Easy Healthcare did not implement reasonable privacy and security measures, including by failing to:
  • Adequately assess the risk of incorporating each SDK.
  • Monitor changes in each SDK Developer's privacy and use policies.
  • Audit SDK Developers' access to and use of data from the app.
  • Implement a privacy compliance program to ensure it met its privacy policy commitments.
  • Provide adequate privacy training for employees responsible for incorporating and managing SDKs.
Among other actions, the proposed settlement requires Easy Healthcare to:
  • Not share users' personal health data with third parties for advertising purposes.
  • Obtain users' affirmative express consent before disclosing their personal health data to third parties for any other, non-advertising purpose.
  • Identify all third parties that received users personal data, whether secured or not, and notify them that Easy Healthcare improperly disclosed the data.
  • Instruct the SDK Developers to delete all of the Premom users' personal information received from the app during specified periods, including hashed or encrypted information, and demand written confirmation of the deletion.
  • Post a notice included in the order on its home page for six months and email it to all users who downloaded the app during the period of violations.
  • Establish a comprehensive, written privacy program, including a data retention schedule that meets certain requirements and provides strong safeguards to protect consumer data.
  • Pay a civil penalty of $100,000 for the HBNR violation.
Easy Healthcare also agreed to pay additional fines totaling $100,000 to Connecticut, the District of Columbia, and Oregon for state and local law violations arising from the same conduct.
The draft order is subject to public comment for 30 days after the FTC publishes the full settlement package in the Federal Register. The FTC will decide whether to finalize the proposed consent order after the public comment period closes. The settlement builds on several recent health data enforcement actions against GoodRX Holdings Inc. and BetterHelp, Inc., initiated after the FTC's 2021 policy statement reminding health apps to comply with the HBNR. For more on these prior actions, see Legal Updates:
The FTC's action serves as clear reminder that businesses should carefully review technology integrations to ensure they fully understand how data flows from their mobile apps and websites to third parties, and what personal information those data flows may reveal.