- The FTC has reached proposed settlements with Assurance IQ, LLC and MediaAlpha, Inc., resolving allegations that the companies misled consumers into buying health insurance plans without the promised coverage and subjected many to unwanted telemarketing and robocalls.
- In its complaint against Assurance, the FTC alleged that the company violated the FTC Act and the Telemarketing Sales Rule by misleading consumers about the actual cost and coverage of health plans on its website and through telemarketing. According to the complaint, consumers were induced to purchase plans that lacked the promised coverage. The $100 million proposed settlement will be used to provide refunds to affected consumers and prohibits Assurance from making various express and implied misrepresentations about health plans, including deceptive claims about the scope of coverage, benefits, and costs.
- In a separate complaint, the FTC alleged that MediaAlpha violated the FTC Act, the TSR, and the Government and Business Impersonation Rule by operating deceptive lead-generation websites and misrepresenting government affiliation and plan coverage. The $45 million proposed settlement will cover refunds for harmed consumers and bars MediaAlpha from engaging in the deceptive advertising practices alleged in the complaint. It further requires MediaAlpha to clearly disclose that its websites are not affiliated with or endorsed by the government, and to obtain informed consent before collecting or sharing consumer personal information.
- The combined $145 million in settlements reflects the FTC’s continued focus on addressing deceptive marketing practices and unlawful lead generation in the online health insurance marketplace.