The companies were co-defendants in a class action lawsuit alleging they unlawfully shared users' sensitive data.

 

What happened

GoodRx and one of its vendors, Criteo, a French digital advertising firm, have come under fire in recent years after accusations that GoodRx unlawfully shared user data with third parties. The lawsuit argued that GoodRx used tracking tools on its website, with health data ultimately shared with Criteo, Google, and Meta between 2017 and 2020.

GoodRx and Criteo agreed to a consolidated class action complaint, Doe et al. v GoodRx Holdings, Inc., et al., rather than facing the suits separately. The complaint argued that the companies were engaging in unfair business practices and improper sharing of consumer data, including in violation of multiple California, New York, and Illinois consumer protection laws. All parties ultimately agreed to settle rather than go through a costly, uncertain trial. A final fairness hearing is scheduled for February 11th, 2027.

 

Going deeper

Uniquely, the defendants and plaintiffs initially agreed to a smaller $25 million settlement, but District Court Judge Araceli Martinez-Olguin rejected it because the parties failed to meet the legal standards to show the agreement was fair to all consumers. The fund was ultimately increased to $32 million. Claims against Meta and Google will continue separately.

 

In the know

The class action settlement followed a Federal Trade Commission (FTC) investigation into GoodRx over its use of tracking tools, which found that the company’s use of those tools violated the FTC. According to the FTC, GoodRx had assured consumers that sensitive data would not be shared with other parties, but instead, data, including sensitive health information, was shared without individuals’ knowledge or consent.

GoodRx disagreed with the FTC’s findings, arguing that it used the tools for advertising purposes in a manner compliant with the FTC. GoodRx also argued that any concerns the FTC had were already addressed by GoodRx in years prior. Despite the disagreement, GoodRx ultimately chose to settle the alleged violations with the FTC for $1.5 million. As part of the settlement, GoodRx also agreed to no longer share health information for advertising purposes and to obtain consent before sharing information for non-advertising purposes.

 

The big picture

This particular class action settlement is part of a much larger debate and legal battle over the use of pixels and giving health data to third parties. In 2023, the FTC argued that pixel tracking was an illegitimate use of consumer data, particularly if the data was health-related and used for advertising purposes. The FTC has cited that the use of tracking technologies is particularly harmful because consumers are often unaware of who has their data and what it may be used for.

Since then, the FTC has gone after many healthcare organizations that they believe are using tracking tools in violation of state and federal laws. Organizations under fire include Hims & Hers Health, BetterHelp, and many others. With the FTC cracking down on these organizations, every healthcare company should be aware of when tracking tools are or aren’t allowed.

 

FAQs

What determines if a deal is fair to all consumers?

There are multiple factors that could have led Judge Martinez-Olguin to reject the $25 million settlement; she may have evaluated the value of the settlement and thought it was too low, she may have thought the settlement was decided without sufficient bargaining, or she may have felt the class was not adequately represented in the process.

 

What will the FTC do with the settlement money?

The FTC has several options for the settlement money; it can return it to consumers, use it for administrative costs, or use it for Consumer Education or the U.S. Treasury. What they choose to do will depend on how many consumers would be eligible for a refund, how much the investigation cost the FTC to complete, among other factors.