Privacy Please

S6, E246 - Unpacking Healthline's Historic CCPA Settlement: What It Means for Data Privacy

Cameron Ivey

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Cameron and Gabe dive into Healthline Media's record-breaking $1.55 million settlement for CCPA violations, examining whether such penalties are sufficient deterrents against improper sharing of sensitive health data.

• Healthline violated CCPA by sharing sensitive user health data with advertisers without proper consent
• First U.S. regulatory action against a company for disclosing "inferred sensitive data"
• Violation included failing to provide mechanisms to opt out of sensitive data sharing
• Discussion of whether fines proportional to company revenue would be more effective
• Comparison of data brokers to other harmful entities in society
• Brief preview of upcoming episode about a major data breach potentially larger than Equifax

Stay safe this holiday weekend and don't put fireworks where they don't belong! Tune in next time for our breakdown of a massive data breach of "epic proportions."


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Speaker 1

Alrighty then . Ladies and gentlemen , welcome back to another episode of Privacy , Please . Cameron Ivey , here hanging out with Mr Gabe Gumbs Gabe , how you doing .

Speaker 2

I'm doing well , sir . How are you , Mr Ivey ?

Speaker 1

Doing well , had a little storm roll through . You probably had some effects from that . When it rains , it pours , it does indeed and it also lightenings .

Speaker 2

When you live in the lightning capital of the world . That's a thing , that is a real thing . Is that why they're called the tampa bay lightning ?

Speaker 1

I think it might be it might have a tiny bit to do with it . Yes , sir , yes sir that makes sense yeah , yeah , a world champion tampa bay lightning .

Speaker 2

Is that what's right ?

Speaker 1

that's true it seems to be that even florida panthers , I mean we've , we've had

Welcome and Storm Talk

Speaker 1

some , uh , the nhL has been owned by Florida teams , which is funny yeah .

Speaker 2

I mean we get a lot of Canucks that visit down this way , but Lord knows , you couldn't freeze an ice cube on the coldest days of the year down there .

Speaker 1

No , I bet it makes so many Canadians mad . But hey , it's the tax stuff .

Speaker 2

I think at the moment they're far angry about other things .

Speaker 1

That's true yeah , that's , very true .

Speaker 2

We should let the line there Shout out to our Canadian brethren north of the border .

Speaker 1

Shout out Canadians , we still love you and your geese , we love you , pal , it's true . Canadian bacon .

Speaker 2

I like that Is't even know is that american you just called canadian bacon probably like french fries . It's probably on the list . Oh yeah , sorry about that . Yeah , freedom there's .

Speaker 1

there's a couple things that have been going on in the security and privacy space that we'll just kind of touch on First we'll talk about . We'll just throw it out there . So one of the biggest settlements for the CCPA right now is the Healthline $1.55 million settlement under the CCPA Gabe . I don't know if you heard of this . It's kind of recent , it just came out .

Speaker 2

You may not know . I've heard of it but I hadn't had a chance to really dig into it . Was that a percentage of revenue of some sort , or just a fine

Breaking Down Healthline's CCPA Settlement

Speaker 2

based on number of records ? I'm curious because , to be honest , 1.5 doesn't really sound like a deterrence for doing better .

Speaker 1

Yeah , that's a good question because it says Healthline Media agreed to a record 1.55 million dollar settlement with the CCPA for violating the . Let's see what they say . Specifically Resolves claims that Healthline shared sensitive user data with advertisers and data brokers without proper consent and opt-out mechanisms .

Speaker 2

Classic , classic . I was going to say it's par for the course . I mean , we know lots of folks continue to still engage in those type of noncompliance behaviors , usually not intentionally . A lack of guardrails internally tends to be behind this . More often than not , you know , the average business isn't intentionally trying to be non-compliant or , for that matter , even unethical . Say what you might about capitalism or , for that matter , even unethical Say what you might about capitalism . But yeah , 1.5 still just doesn't seem like the guardrail I would want it to be .

Speaker 1

Yeah , I mean it's a lot of money , but it's really not that much , You're right . So here are three things that this will kind of shed light on some more specifics . So they're paying this fine due to a couple of reasons .

Speaker 1

So one main line health , health line media , so prohibiting the sale or sharing of personal information linked to specific medical diagnosis , providing notice and the right to limit the use and disclosure of sensitive personal information before sharing it for advertising , and implementing a program to assess the functionality of opt-out mechanisms and ensure third-party contracts meet ccpa requirements . Those are the three things that they did not do , that's right , which are pretty big . I mean , that's it's pretty big . Yeah , you know it's pretty important .

Speaker 2

That's quite a bit . That's quite a bit , you know , back of the napkin . Search suggests that Healthline is a wildly profitable business with , you know , revenues in the high double digit millions and profits that aren't that far off of that . So you know , that again goes right back to that . I'm never really a fan of compliance being the first guardrail for these kinds of challenges , and I'm not certain that imposing record-breaking or otherwise 1.5 million is really a deterrence to others

Questioning Fine Effectiveness as Deterrents

Speaker 2

yeah , I I'm trying to see if there's more information on what I mean .

Speaker 1

I wish they would kind of break down why that number , why only that and they settle on that .

Speaker 2

Like gdpr , for example , their fines are , if I'm not mistaken , they're based on a percentage of revenue , right , right ?

Speaker 1

because this I mean the last one before this was what ? 1.2 million , which was the sephora one that we were talking about earlier . Right , right , right right , that was back in 22 , but what's funny is this was also oh wait , okay , yeah , they were mentioning it . So some of the I'm trying to see if there's any more like specific details . So this is the first US regulatory privacy enforcement action where a company has been fined for disclosing inferred sensitive data .

Speaker 2

What's inferred . So not direct , but it means that they may have been able to de-anonymize individuals based on it . I mean , inference and de-anonymization are kiss and cousin , so I'm I'm drawing a straight line there . But but it means that they were able to infer who cameron ivy was without direct reference to who cam Ivory was .

Speaker 1

Right .

Speaker 2

That's extra naughty yeah .

Speaker 1

Inferred based on articles . Read is what .

Speaker 2

Interesting .

Speaker 1

I don't know . This is interesting . So and obviously you know we're dealing with health related data . I don't know the company that I've never really honestly heard of them before .

Speaker 2

There are about a billion healthcare companies None of us have heard of , and they're all making ungodly amounts of money .

Speaker 1

Oh what . We can sell you all of these personal health information for a lot of money and yeah , that's it .

Speaker 2

Payout claims .

Speaker 1

Yeah , all right .

Speaker 2

That sounds like a good idea . Let's do it , let's go .

Speaker 1

What do we do ? My other question is are the people that made that decision still there or are they gone already ?

Speaker 2

Come on , they're still there and they're not going to be For what it's worth . Again , I'm not even sure I'm inclined to levy blame upon those individuals . Right ? Like I said , it's hard to prove malice and I don't usually wake up in the morning and assign malice to these types of things . Just , most people wake up and they just want to do their jobs , they want to do it well , they want to be compensated fairly and they want to go home . That's not everyone , of course , but I don't necessarily subscribe to the . You know , all of these folks are evil , even when they're dealing with data brokers , although all data brokers , on the other hand , I might not have the same appreciation for , yeah , but you know I also don't have a strong appreciation for people that you know like sell drugs or whatever . Yes , I'm equating the two .

Speaker 2

Yes they're both damaging to the community for freak's sake .

Speaker 1

Hey , you know , I mean you got to put food on the table somehow .

Speaker 2

Well , yeah , I understand , I understand , I understand . Even scumbags have to eat , right Like yeah , no , that's interesting .

Speaker 1

Let them eat cake .

Speaker 2

So , yeah , I don't know that those individuals should be held personally accountable . We obviously don't know enough about it , right ? Yeah , I certainly don't know what the future for CCPA is . If this is the signals we're going to send to businesses to protect our data , I don't know that this signal is the right signal to send . It seems , quite in my personal and professional opinion , it might be the exact wrong signal to send , and I'm not suggesting you find them into oblivion such that they go out of business . But I don't know , maybe we need more DOJ-style actions where you know what ? Now we are going to embed a data privacy officer from the government into your business for the next 18 months to make sure that you know what to do . Well , not to babysitit , but to help you to that point .

Speaker 1

I was just thinking well , maybe they got this number because based on how much information they had sold . Maybe

Inferred Sensitive Data Violations

Speaker 1

you know what I mean . Like , maybe because it's based off of , isn't it like a percentage per word or per letter or something ?

Speaker 2

like that . I don't think it's per word .

Speaker 1

Yeah , um , listeners , or you know anybody out there that knows I mean , shoot us a message or you can always come on and talk further about it . That's more knowledgeable about that kind of stuff . But I think that's . I think that makes sense , I would make sense to , but you know they should tack on to whatever else . I don't know . I think you're you're on to something there because it's like , well , if it's just a slap on the risk , you know , and we made , how much did they make on some ?

Speaker 2

data anytime the cost of doing business exceeds the cost of the fine substantially . Right , that's , that's just , uh , that's just a luxury tax really right .

Speaker 1

And the other thing is like it's not going to affect them and like , oh well , these consumers aren't going to trust this company . Now it's like it doesn't matter , they already have your information that . Yeah , that cat's so far out of the box yeah , I don't like it , but I'm glad that there's , you know .

Speaker 2

I'm glad CCPA exists in some form at least now . You are correct . Prior to the enactment of that regulation there'd be zero repercussions and recourse . There'd just be a little salacious article and maybe we don't even mention it on the show and others aren't informed . Then everyone keeps it moving right .

Speaker 1

Yeah , agreed then . Uh , everyone keeps it moving right . Yeah , yeah , agreed . Um , I know that there was like , uh , well , we can touch on this . We'll do a couple other special episodes . This is a little bit shorter , of course , but we just wanted to kind of dive into that and um on this episode , but we'll have another one coming out . Uh , gabe will talk about . Um , we'll both talk about , but there's , there was like a . There was a recent hack . It was one of the largest ones in history . There were a few .

Speaker 2

Yeah , we're gonna dive into the details and peel back the curtain on one of the larger hacks , uh , of modern times , certainly , uh , maybe ever Of epic proportions . Quite frankly , yeah , I've got some information and I've been having some conversations with some folks , both near and

Preview of Major Hack Discussion

Speaker 2

far to the scenario and , yeah , we'll lay that out for our listeners .

Speaker 1

Yeah , because this is going to surpass Equifax , right . This is going to surpass Equifax , right . I think it was actually Google , apple , I don't know . We'll get into it on the next episode , but let's just say it was pretty massive . Indeed Gabe , always a pleasure A pleasure indeed .

Speaker 2

Happy 4th of July to everyone out there . Happy uh 249th to the , to the union .

Speaker 1

Hope everybody has a safe weekend and , uh , we'll see you guys on the next one don't put any fireworks in your buttocks or between your fingertips and uh , yeah , do that . Don't , don't do that don't do that , don't do that , don't do that . Nobody wants nubs .

Speaker 2

Nobody wants nubs in either location .

Speaker 1

We out Be safe .