FIRST ON FOX: The Federal Trade Commission (FTC) announced Thursday it had reached massive settlement agreements in a pair of lawsuits alleging two companies, Assurance IQ and MediaAlpha, misled consumers about healthcare services and bombarded them with robocalls.
The combined settlements amount to $145 million and are part of a broader effort to tackle what Christopher Mufarrige, director of the Bureau of Consumer Protection, says are lead-generating practices by companies that violate the FTC Act and telemarketing rules.
“Coherently and systematically addressing unlawful lead generation is a priority for the FTC,” Mufarrige said in a statement provided to Fox News Digital. “That’s especially so in connection to health insurance, one of the most expensive and important products consumers buy to protect themselves and their families.”
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MediaAlpha and Assurance IQ allegedly conveyed inaccurate information about health insurance plans to consumers and abused the personal data they gained from the consumers to target them with incessant telemarketing phone calls, the FTC said.
MediaAlpha, a technology company, solicits information from people in exchange for selling personalized health insurance options to them. However, MediaAlpha has agreed to pay $45 million in response to the FTC’s claim in a complaint that the company “actually [sells] its consumers nothing.” It instead allegedly engages in nuisance robocalling and sells contact information it harvests to telemarketers.
“Many consumers have received dozens or even hundreds of such solicitations in a matter of days, and the intrusions can go on for months,” FTC attorneys wrote.
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Assurance IQ, a technology platform that was acquired by Prudential Financial in 2019 but was shuttered years later, also misled consumers about health plans and has agreed to pay $100 million as a result, the FTC said. Reuters first reported on the Assurance IQ settlement.
Telemarketers for Assurance IQ allegedly misled consumers about healthcare coverage plans they were selling, including by falsely claiming the plans covered preexisting conditions.
FOX Business reached out to MediaAlpha for comment.
Prudential said in a statement provided to FOX Business that it takes regulatory compliance seriously and noted Assurance IQ is no longer in operation.
“None of the allegations are against Prudential, but rather involve the historical operations of an acquired business that is no longer operational,” the company said in a statement. “Resolving this matter for that former business is in the best interest of all parties involved to focus on the future. Prudential is pleased this matter is settled so we can continue to prioritize our core businesses and capabilities.”
Chris Bissex, deputy director of public affairs for the FTC, told Fox News Digital the settlements were one example of the myriad ways the FTC is monitoring for anticompetitive practices in the healthcare industry.
“Unfair and deceptive practices when it comes to healthcare are concerning because it can impact consumers’ wallets and their health,” Bissex said. “These settlements represent one of the many ways the FTC is looking out for consumers in the healthcare space.”
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