GoodRx Reaches $25 Million Settlement Over Health Data Sharing & Tracking Allegations

GoodRx $25M Settlement Over Health Data Sharing

GoodRx's unauthorized sharing of sensitive health information with tech giants has resulted in a $25 million class-action settlement. Eligible class members will receive compensation based on authorized claims, after deducting attorneys' fees, costs, and expenses.

by
December 4, 2024

Digital health platform GoodRx has agreed to a $25 million settlement to resolve ongoing litigation regarding unauthorized data sharing and tracking practices that compromised user privacy.

Key Settlement Details
  • Total Settlement Amount: $25 million
  • Primary Allegations: Unauthorized sharing of sensitive health information with third parties like Meta Platforms, Google, and Criteo for advertising purposes
  • Legal Context: Class-action lawsuit filed in the Northern District of California

Background of the Alleged Violations

 GoodRx was alleged to have systematically violated user privacy through:

  • Embedding third-party tracking pixels from companies like Facebook and Google
  • Sharing sensitive health information without explicit user consent
  • Using tracking technologies to collect and monetize personal health data

Specific Alleged Violations
  • Data Sharing Practices:
    • Shared users’ prescription medication details
    • Disclosed personal health conditions
    • Transmitted contact information to advertising platforms
    • Used custom tracking technologies to facilitate targeted advertising
  • Legal Allegations:
    • Violated various state laws, including wiretapping statutes, consumer protection laws, and privacy rights
    • Negligence and unjust enrichment

Settlement Requirements
  • GoodRx must pay $25 million to settle the class-action lawsuit
  • Attorneys seek up to $8.3 million (one-third of the settlement fund) in legal fees
  • Eligible class members will receive compensation based on authorized claims, after deducting attorneys’ fees, costs, and expenses

Expert Perspective

 This settlement represents a critical moment in digital health privacy, demonstrating commitment to protecting sensitive personal information in an increasingly data-driven healthcare ecosystem.

 

**Note:** This $25 million settlement is part of a separate class-action lawsuit and is not related to the $1.5 million settlement with the Federal Trade Commission (FTC) in February 2023, which addressed similar allegations of unauthorized data sharing.

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