A report by Laboratory Economics, features insights from Senior Associate Ali Jessani regarding the FTC taking “first-of-its-kind” action against 1Health.io Inc, also known as Vitagene Inc., a genetic testing company. This new regulation points to an emphasis the FTC is making on protecting sensitive data.
Excerpt: Jessani believes the FTC may increasingly bring actions against companies for violation of data privacy and security under Section 5 of the FTC Act, especially when it comes to sensitive data, such as genetic information […] The FTC is embracing its role as a privacy regulator and is looking to expand the types of enforcement actions it can bring. What they’re doing is signaling to the rest of the industry that these are practices the FTC views unfavorably and that could potentially be violations of Section 5."
The FTC charged that 1Health was deceitful about the security of their consumer data storage processes and their ability to get consumer data deleted. All while changing their privacy policy without notifying or obtaining consent from consumers who had already provided their data. 1Health.io is now required to pay a substantial fine, is prohibited from sharing health data with third parties etc.
As a result of this decision, and the FTC’s heightened focus on protecting consumer’s sensitive information, Jessani advises that companies comply with data deletion requests, notify consumers of Privacy Policy Changes, require third parties to contractually comply and should keep watch on the FTC’s expanding regulations aimed at companies that deal with sensitive data, and at particular practices that the agency deems “unfair.”