FTC Secures $145 Million Settlement Over Deceptive Health Insurance Marketing

The Federal Trade Commission (FTC) announced two significant settlements totaling $145 million, targeting companies accused of deceiving millions of consumers seeking comprehensive health insurance solutions. 

$100 million judgment against Assurance IQ

The FTC found Assurance IQ misled consumers by claiming its short-term and limited-benefit plans covered preexisting conditions, had no benefit caps, and included free supplemental services. The company must stop deceptive claims and obtain clear consent before billing.

$45 million settlement with MediaAlpha

MediaAlpha operated government-style websites to collect consumer data under false pretenses, then sold it to telemarketers. The FTC also cited fake endorsements, misleading ads, and illegal robocalls. The company must surrender misleading domains, disclose it is not government-affiliated, and get informed consent before using consumer data.

Why this matters 

This dual settlement underscores the critical importance of ethical lead generation and transparent marketing, especially in sectors where consumer trust and regulatory scrutiny intersect. Businesses, particularly those in health finance and insurance, must ensure that promotional materials are factual, claims are substantiated, and that consumer consent and data privacy are front and center.

DISCLAIMER: The information on this page and related links is provided for general education purposes only and is not legal advice. Convoso does not guarantee the accuracy or appropriateness of this information to your situation. You are solely responsible for using Convoso’s services in a legally compliant way and should consult your legal counsel for compliance advice. Any quotes are solely the views of the quoted person and do not necessarily reflect the views or opinions of Convoso.