Digital health platforms such as Health Engine have in the past been strictly scrutinised for alleged security breaches and other privacy violations by the Australian Competition and Consumer Commission (“ACCC”).
The ACCC instituted legal action against health IT business, Health Engine, alleging:
- That Health Engine indulged in the practice of selective editing of reviews of medical and health practices provided by patients thereby misleading the community. Though this practice was discontinued in the face of severe criticism, the ACCC believed that action against the organisation was still necessary for damage done; and
- That for an organisation like Health Engine, maintaining privacy of patient data is crucial and that Health Engine breached these obligations. The ACCC alleged that Health Engine had shared patient data with third parties by falsely obtaining the consent of patients and, in some instances, even without notifying them. It was reported that Health Engine had obtained the consent of the patients by telling them that the data was required if they wished to obtain insurance.
The CEO of Health Engine stated that the sole aim for publishing reviews was to benefit patients by assuring them of the quality of the medical centre they were booking with.
It was further alleged by the ACCC that personal information of patients had been shared with several insurance brokers for a fee. In doing so, Health Engine used language that could lead patients to believe that Health Engine itself provided insurance services.
These actions of Health Engine were widely condemned by the ACCC on the basis that they were misleading and deceptive. The ACCC sought penalties and applied for a court order that would require Health Engine to contact affected consumers and provide them with explanation as to how they could regain control of their personal information.
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