Class action against Teladoc alleges privacy invasion
American company offers virtual health in N.L.
A class action lawsuit filed against Teladoc — a company contracted by this province to provide virtual care — is raising concerns about the security of Newfoundlanders’ and Labradorians’ personal health information.
The action filed in a New York federal court at the end of January accuses the company of privacy invasion for allegedly using a tracking pixel on its website to wiretap communications and share them with Facebook for targeted advertising.
The plaintiffs allege Teladoc shared their sensitive health information without consent.
Health Minister Tom Osborne told reporters on Monday it’s unclear whether there are grounds for the class action or whether it’s frivolous, but he said it’s something “we’ll certainly watch.”
Osborne said the rules, regulations and legislation in this province are different from the United States.
“We can assure that Teladoc, and the doctors who will be licensed and regulated in this province to operate with Teladoc, will follow the appropriate legislation in this province,” he said.
NOT FIRST PRIVACY-RELATED COURT CASE
Saltwire pointed out to Osborne another case involving Teladoc in which its mentalhealth subsidiary, Betterhelp, was alleged to have shared customers’ sensitive health data with third parties without consent for advertising purposes.
The Federal Trade Commission (FTC) said Betterhelp sent personal health information to Facebook, Snapchat, Pinterest and others for marketing purposes. In the settlement last March, Betterhelp agreed to pay clients $7.8 million. The FTC also barred Betterhelp from sharing health data for advertising purposes.
In a statement, the company did not admit wrongdoing. It said it used “limited, encrypted information to optimize the effectiveness” of its advertising campaigns, something it called an industry standard practice that’s routinely used.
“Nonetheless, we understand the FTC’S desire to set new precedents around consumer marketing,” the company said in the statement.
On Monday, Osborne said he wasn’t aware of that case.
The provincial government announced its $22-million contract with Teladoc in November, eight months after the Betterhelp settlement.
Osborne said he has become “far more aware” of Teladoc since the company became the successful proponent to offer virtual care in this province.
COURT CASES ‘WORRISOME’
During question period on Monday, NDP Leader Jim Dinn said the province lacks data security legislation that clearly outlines how policies need to be developed and rolled out to digital services.
He said there also needs to be clear consequences for breaking the rules.
“If we learned anything from the data privacy breach with the health authorities, it’s the need to have that consciousness around data protection, especially in this digital age,” Dinn said.
Progressive Conservative Leader Tony Wakeham said the privacy allegations against Teladoc are very concerning.
“The fact that this U.S. company has now been in the courts before, and are now back in the courts — it’s worrisome, it’s troublesome,” he said.
“I think it’s fine to have legislation … and you may bring someone to court because of that legislation, but does that prevent them from actually using your information? I mean, it wasn’t that long ago that we had a huge privacy breach here in the province of Newfoundland and Labrador with our health-care information,” Wakeham said.
‘DIFFERENT MODEL’
Wakeham said he believes the contract with Teladoc was “just another one of these quick announcement decisions to be seen to be doing something.”
He said there are solutions here in the province, such as using local companies or by using the regional health centres differently.
“I believe in a different model,” he said.
Wakeham suggested adding staff to the regional health centre emergency departments, and if there are communities without a physician at any given time, their point of virtual contact could be the regional centre.
He said that method would also offer better continuity of care than a virtual Teladoc appointment with a doctor who isn’t located in the province.