New: a trial court in 1 of every 10 U.S. counties. Read the post
Court Rules
All enforcement actions
Consent DecreeLow Risk

FTC Settles SkyMed International for Health Data Security Failures

SkyMed International, Inc.December 16, 2020Federal Trade Commission

Consumers Affected

130,000

Summary

SkyMed International, Inc. settled FTC allegations that it failed to secure sensitive consumer data, including health information, leaving a cloud database with 130,000 records exposed to the public. The FTC also alleged that SkyMed misrepresented HIPAA compliance on its website. As part of the settlement, SkyMed must implement a comprehensive security program, undergo biennial third-party assessments, and send notices to affected consumers.

Remedy

SkyMed is required to establish and maintain a comprehensive information security program, obtain regular third-party audits, notify affected consumers about the data breach, and cease making false claims about its data security and HIPAA compliance.

InjunctionCompliance ProgramAudit RequirementCorrective Notice

Contract Impact

In-house legal teams should review all agreements involving the processing of consumer health data, including vendor contracts, customer membership agreements, and data processing addendums. Specific clauses to examine are data security provisions, HIPAA compliance representations, breach notification obligations, and audit rights. Changes may be needed to mandate robust security measures like encryption and access controls, require regular third-party assessments, ensure accurate compliance certifications, and establish clear, timely breach notification procedures to protect sensitive health information.

Contract Search Terms

comprehensive information security programHIPAA compliance representationrisk assessment requirementpenetration testing provisionnetwork monitoring obligationthird-party security assessment clausebreach notification timelineconsumer notice requirementdata encryption standardaccess control measures

Laws Cited

HIPAA

Violation Types

Entity Details

Entity

SkyMed International, Inc.

Also known as: SkyMed International

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"SkyMed International, Inc."
Laws Cited
"HIPAA"
Violation Types
"failed to take reasonable steps to secure sensitive consumer information"

Related Enforcement Actions

FTC

SkyMed International, Inc.

The FTC finalized a settlement with SkyMed International, Inc., an emergency travel services provider, for failing to secure sensitive consumer data and deceiving consumers about HIPAA compliance. The company left a cloud database with 130,000 membership records unsecured, containing personal and health information. Under the settlement, SkyMed must notify affected consumers, implement a security program, undergo biennial assessments, and is prohibited from misrepresenting its data practices.

FTC

REPS & Company Inc.

The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.

FTC

Digital Forensics Corporation LLC

The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.

FTC

Greenway Auto Group

The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.

FTC

24 healthcare services companies (not individually named)

The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.

FTC

Premier Franchising Group LLC and Franchise Fastlane LLC

$1.9M

The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.