Data Breach Fallout: FTC Delivers Justice with Consumer Refunds and Data Privacy Protections

Federal Trade Commission

WASHINGTON, D.C. — The Federal Trade Commission (FTC) has initiated the distribution of refunds to over 2,400 consumers following a settlement with 1Health.io, previously operating under the name Vitagene. This action arises from allegations that the genetic testing firm compromised sensitive genetic and health information, misled customers about data deletion options, and unfairly modified its privacy policy retroactively.

The FTC’s complaint, filed in June 2023, accused 1Health.io of failing to secure consumer data despite assurances of surpassing industry-standard security measures. The company was also charged with falsely guaranteeing consumers the ability to delete their personal data, a promise unfulfilled due to inadequate data management. Furthermore, in 2020, 1Health.io was alleged to have altered its privacy policy to expand data-sharing with third parties without notifying or obtaining consent from consumers.

In response, the FTC is dispersing over $49,500 in payments to 2,432 affected consumers. Most recipients will receive checks, which must be cashed within 90 days. For those without a current address, a PayPal payment will be issued, requiring redemption within 30 days.

This intervention by the FTC emphasizes the importance of data privacy and highlights the agency’s efforts to protect consumer rights in the digital age. The refunds serve as a critical reminder of the necessity for companies to adhere to transparent and secure data practices, safeguarding consumer trust and data integrity.

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