Antitrust Law Daily Wrap Up, PRIVACY NEWS: Schumer urges FTC to regulate fitness devices’ sale of health data, (Aug 11, 2014)

By Greg Hammond, J.D.

U.S. Senator Charles E. Schumer (D-N.Y.) is calling on the FTC to require fitness app and device companies—such as the developer of the fitness bracelet “FitBit”—to provide consumers with a “clear and obvious opportunity” to opt-out of personal health data being provided to third parties. According to Schumer, fitness devices and apps are tracking consumer’s personal information, such as steps taken per day, calories burned, GPS locations, sleep patterns, blood pressure, weight, and others. However, there are currently no federal protections to prevent companies from selling health data to third parties without consumers’ consent.

“Personal fitness bracelets and the data they collect on your health, sleep, and location, should be just that – personal,” Schumer stated. “The fact that private health data – rich enough to identify the user’s gait – is being gathered by applications like FitBit and can then be sold to third-parties without the user’s consent is a true privacy nightmare.”

Once provided with consumers’ personal health data, companies would be able to discriminate against the users based on that sensitive and private information, the senator asserted. While these new technologies are “positive and effective” for the promotion of healthier and more active living, Schumer argued that there are inadequate federal protections in place to protect consumer privacy. Specifically, he urges that the FTC investigate vague privacy policies by these companies so consumers can make informed choices on whether their personal data may be sold to third parties for advertising or other purposes.

“If companies of fitness devices have the ability to sell personal health data to insurers, employers and others, users should be alerted and given the opportunity to decline. The FTC should require fitness devices and app companies to adopt new privacy measures that will help conceal the identity of individuals and develop policies to protect consumer information in the event of a security breach.”

Consumers having the benefit of stronger privacy policies will be better able to enjoy the “many perks of their fitness devices” without increasing threats to their private health information, according to Schumer.

News: Privacy