The Justice Department and the Federal Trade Commission (FTC) announced today that a federal court in Washington, D.C., has entered a settlement prohibiting alcohol addiction treatment company Monument Inc. from misrepresenting its data privacy practices and disclosing its customers’ health information to third parties for advertising purposes. The settlement also mandates the company to implement measures to safeguard its customers’ personal information. Additionally, the court imposed a $2.5 million civil penalty judgment against Monument, which is suspended due to the company's inability to pay.
A civil complaint filed today alleges that Monument violated the Federal Trade Commission Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018 by falsely claiming on its website and elsewhere that it would not disclose its customers’ health information without their express consent and by failing to employ reasonable measures to protect this data. The complaint asserts that these failures resulted in the disclosure of thousands of users’ health information to third parties for advertising or other purposes.
“Treatment for substance abuse and addiction is highly personal and sensitive, and companies providing such services must be especially vigilant in safeguarding their customers’ information,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to working with the FTC to protect Americans’ sensitive information.”
“This action continues the FTC’s work to ensure strict limits on how firms handle sensitive health data, rather than putting the onus on consumers to protect themselves,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Following on the heels of actions against GoodRx, BetterHelp, and Premom, the market should be getting the message that consumer health data should be handled with extreme caution.”
Senior Trial Attorney Richard Greene and Assistant Director Zachary Dietert of the Civil Division's Consumer Protection Branch are handling this matter, working in conjunction with staff at the FTC’s Division of Privacy and Identity Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.