FTC fines drug discount app for sharing user information to Facebook and Google

The Federal Trade Commission has slapped prescription drug discount app GoodRx with a $1.5 million fine for the unauthorized disclosure of customers’ identifiable health information with third parties, such as Facebook and Google. This is the first time the agency has taken enforcement action under its Health Breach Notification Rule, which requires vendors of personal health records to notify customers if their data has been breached. While the rule has applied to companies handling health records since 2009, FTC commissioners voted in favor of expanding it to cover health apps in 2021. 

According to the FTC, the California-based telehealth service repeatedly violated the rule by sharing customers’ personal health information, including their health conditions and the medicine they’re taking. Further, it shared their information with companies that have third-party advertising platforms like Facebook, Google and Criteo despite making a promise to customers that it will never do so. The FTC says GoodRx also monetized its customers’ information. In 2019, for instance, it uploaded the email addresses, phone numbers and mobile advertising IDs of users who purchased certain medications to Facebook, so it can target them with health-related ads. 

In addition to imposing a $1.5 million fine on GoodRx, the FTC is also seeking to change how the company handles user information. In its proposed court order (PDF) against the company, it listed several provisions, including banning the service from disclosing user data for advertising purposes. For other purposes, it wants to require GoodRx to secure customers’ consent first before sharing their health information to third parties. The FTC also wants GoodRx to get the third parties it shared data with to delete its customers’ information, and it wants the company to establish a comprehensive privacy program that will protect user data. 

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said in statement:

“Digital health companies and mobile apps should not cash in on consumers’ extremely sensitive and personally identifiable health information. The FTC is serving notice that it will use all of its legal authority to protect American consumers’ sensitive data from misuse and illegal exploitation.”

US labor regulator says Apple violated employee rights with restrictive work rules

The National Labor Relation Board (NLRB) has determined that Apple’s rules around leaks violate workers’ rights, Bloomberg has reported. Apple’s actions and statements from executives “tend to interfere with, restrain or coerce employees” from exercising their rights, a spokesperson said in a statement.

The decision stems from complaints by former employees Cher Scarlett and Ashley Gjøvik. Scarlett alleged that Apple work rules “prohibit employees from discussing wages, hours or other terms or conditions of employment,” in violation of labor laws. Gjøvik, meanwhile, complained that an email sent by CEO Tim Cook vowing to punish leakers violated federal laws. Apple’s policies prohibiting staff from disclosing business information, talking to reporters and other actions were also illegal, Gjøvik alleged. 

In the email in question, Cook wrote that “we do not tolerate disclosures of confidential information, whether it’s product IP or the details of a confidential meeting… people who leak confidential information do not belong here.” That was in response to the leak of a company-wide meeting that was effectively tweeted live by a journalist, as TechCrunch noted.  

The NLRB will issue a complaint against Apple unless the company settles, the spokesperson said. Apple has yet to comment, but a company attorney previously said, “Apple fosters an open and inclusive work environment whereby employees are not just permitted, but encouraged, to share their feelings and thoughts on a range of issues, from social justice topics to pay equity to anything else that they feel is an important cause to promote in the workplace.”

Gjøvik was fired by Apple in 2021 for leaking confidential information and told TechCrunch she believes she was let go in retaliation after filing an EPA report about toxic fumes in her office. She complained to the NLRB that she was let go illegally, but the board has yet to issue a ruling on that subject. 

The NLRB recently found that Apple violated federal law with anti-union meetings in Atlanta. Earlier this month, Apple agreed to review its labor practices, saying in an SEC filing that it would assess its “efforts to comply with its Human Rights Policy as it relates to workers’ freedom of association and collective bargaining rights in the United States by the end of calendar year 2023.” 

Workers at eBay-owned trading card marketplace TCGplayer are trying to unionize

More than 280 workers at TCGplayer, a marketplace for trading card games like Magic: The Gathering and Pokémon, are trying to unionize. A supermajority of the workers have filed for a union representation election with the National Labor Relations Board. If their efforts are successful, they’ll form the first union at eBay, which bought TCGplayer in 2022 in a deal worth up to $295 million.

Employees of several card and tabletop companies have unionized, including Card Kingdom, Bellevue Mox Boarding House, Noble Knight Games and Paizo. The TCGplayer workers are similarly trying to organize with the Communications Workers of America (CWA), which has also worked with severalvideo game studios in their unionization attempts.

“We are ready to unlock the full potential we know TCGplayer can have. By forming a union, we are able to support each other, customers, and sellers to create the best TCGplayer for all of us,” Jennifer Bonham, a shipping generalist at TCGplayer, said in a statement. “We are incredibly passionate about our work, but passion can only get us so far. We want to see our collective health and well-being thrive because for many of us, this is the best job we have ever had.”

The workers are organizing as TCG Union/CWA and are all employed at the company’s authentication center in Syracuse, New York. They each play a hand in ensuring card shipments meet quality standards and that they’re accurately completed.

The workers are seeking an end to pay caps; pay rises to account for inflation and cost of living increases; and “a fair and comprehensive sick leave and absence policy that does not punish people” for issues outside of their control. Moreover, they’re demanding inclusive career advancement opportunities; fair and transparent hiring practices; clearly defined job roles and expectations; and the resources and training needed to do their jobs. On top of that, they’re asking for a seat at the table, along with “just cause and clear grievance and discipline procedures, applied equally to management.”

This isn’t the first time that the workers have attempted to unionize, as Polygon notes. They tried to do so almost three years ago with the Service Employees International Union. However, just days before the scheduled vote, they withdrew the petition. The eBay acquisition is said to have reignited the unionization drive.

“We have received notice that a petition is being filed by the Communications Workers of America labor union asking the National Labor Relations Board to conduct a vote on union representation,” a TCGplayer spokesperson told Engadget in a statement. “We have not seen that petition by the National Labor Relations Board, nor have we had the chance to review it. We respect an employee’s right to choose or to decline union representation, and acknowledge this is a big decision. Our commitment to our employees during this time is to ensure they have the information needed to make an informed and confidential choice.”

Engadget has contacted eBay for comment.

Elon Musk says his SpaceX shares would’ve funded his plan to take Tesla private

Elon Musk said he could’ve sold his SpaceX shares to take Tesla private when he took the witness stand again to defend his 2018 “funding secured” tweets in a lawsuit filed by the automaker’s shareholders. According to CNBC, Musk proclaimed: “SpaceX stock alone meant ‘funding secured’ by itself. It’s not that I want to sell SpaceX stock but I could have, and if you look at the Twitter transaction — that is what I did. I sold Tesla stock to complete the Twitter transaction. And I would have done the same here.” He didn’t say how many of his shares he’d have to sell, however, to be able to fund the transaction. 

The plaintiffs’ lawsuit is based on Musk’s infamous 2018 tweets in which he said he was “considering taking Tesla private at $420.” He even said that he already had “[f]unding secured.” Musk first took the stand for this particular case last week to defend himself against the plaintiffs’ accusations that the tweets he made cost them significant financial losses. Tesla’s shares temporarily stopped trading after those tweets and remained volatile in the weeks that followed. He said at the time that just because he tweets something “does not mean people believe it or will act accordingly.”

This time, Musk reiterated his previous claim that he had an agreement with Saudi Arabia’s Public Investment Fund to take Tesla private. He told the court that the country was “unequivocal” in its support of the transaction, which ultimately didn’t go through. According to Bloomberg, the court discussed his communication and eventual falling out with Saudi fund governor Yasir Al-Rumayyan regarding the deal. A text exchange was reportedly presented to the jury, wherein Musk accused Al-Rumayyan of backing out of their handshake agreement. The Saudi official responded that he didn’t have sufficient information to be able to commit to the buyout and called Musk’s public announcement of their discussions “ill advised.”

The plaintiffs’ lawyer also asked Musk what many of us were probably wondering: If the $420 share price in his tweets was made as a joke in reference to marijuana. Apparently, it wasn’t a joke, and he chose it “because it reflected about a 20 percent premium on Tesla’s stock price.” Musk is expected to testify again on Tuesday, so we’ll likely hear more details about his failed bid to convert Tesla into a private entity. 

As Bloomberg notes, the judge in this case had already determined that his tweets were “objectively false and reckless.” However, the plaintiffs still have to prove that Musk knew his tweets were misleading and that his tweets caused their losses to win the case. Musk and Tesla previously had to pay the Securities and Exchange Commission $20 million each to settle a separate lawsuit over the same tweets, accusing him of making “false and misleading statements” that could be constituted as fraud. The CEO said on the stand that he told the SEC about SpaceX and that the plaintiffs’ lawyer “deliberately exclud[ed] that from jurors.”

Spotify is laying off 6 percent of employees

Spotify is laying off 6 percent of its workforce as part of a company-wide restructuring, CEO Daniel Ek wrote in a message to employees. The precise number of people who will lose their jobs wasn’t provided, but the company employs around 9,800 people, according to its last earnings report. In addition, chief content officer Dawn Ostroff is stepping down as part of the changes, Ek said. 

Much like Google’s Sundar Pichai, Ek said he takes “full accountability for the moves that got us here today.” The company will provide 5 months of severance to employees on average, along with acrued and unused vacation time, healthcare during the severance period, immigration support and career support. The majority of Spotify’s employees are based in the US, followed by Sweden and the UK.

The company is “fundamentally changing how we operate at the top,” delegating its engineering and product work to the new chief product and chief business officers, Ek said. “These changes will allow me to get back to the part where I do my best work—spending more time working on the future of Spotify.”

Like other tech firms, Spotify has expanded rapidly over the past couple of years, particularly in the area of podcasting. It spent over a billion dollars on podcast networks, hosting services and shows like The Joe Rogan Experience. Much of that effort was driven by chief content officer Dawn Ostroff, who grew podcast content by 40 times, according to Ek. As part of the changes, however, she’ll be leaving the company.

Spotify joins other tech giants in making mass layoffs, partially due to a downturn in the economy and partially due to hiring sprees. Over the past few weeks, Microsoft, Amazon, Meta and Google laid off 51,000 employees combined. From 2020 to 2022, however, those companies hired many more employees than they let go. Spotify itself had 6,617 employees in 2021 and 9,800 a year later, prior to the layoffs. 

FTC asks court to hold Martin Shkreli in contempt for launching new drug company

Martin Shkreli, whom you may know as “Pharma Bro,” launched a new company last year called “Druglike, Inc.” Now, the Federal Trade Commission (FTC) has asked a federal judge to hold him in contempt for failing to cooperate with the agency in its investigation to determine whether launching the company violates his lifetime industry ban. US District Court Judge Denise Cote imposed a lifetime ban on Shkreli that prohibits him from participating in the pharmaceutical industry early last year. Cote ruled that the former pharma exec orchestrated an illegal anticompetitive scheme to gain a monopoly over Daraprim, a life-saving anti-malarial and anti-parasitic drug. 

After Shkreli’s former company, Turing Pharmaceuticals, obtained the manufacturing license for Daraprim, it raised the drug’s prices from $17.50 to $750 per tablet. Cote sided with the FTC in the antitrust lawsuit the agency filed against Shkreli in 2020 and ordered him to pay $64.6 million in damages, in addition to imposing a lifetime industry ban against him. Prior to Druglike’s launch, Shkreli tried (and failed) to convince a judge to put the ban on hold, arguing that the public could benefit from his future contributions to the industry. Shkreli challenged the ban while he was serving time in federal prison after receiving a seven-year sentence in 2017 for defrauding investors. He was released from prison in May.

The FTC said it started asking Shkreli for a compliance report and access to relevant records, as well as asking him to sit for an interview regarding Druglike, in October 2022. However, the company co-founder kept on disregarding its “repeated requests.” The agency also said that Shkreli has yet to pay any amount of his $64.6 million fine. It’s now asking the court to order Shkreli to comply with its information requests within 21 days of its decision. 

In a press release (PDF) for its launch, Druglike described itself as “a Web3 drug discovery software platform.” The company said it’s building a “decentralized computing network” that “provides resources for anyone looking to start or contribute to early-stage drug discovery projects.” In a statement, Shkreli said “Druglike will remove barriers to early-stage drug discovery, increase innovation and allow a broader group of contributors to share the rewards.”

Google is laying off 12,000 employees

Google parent Alphabet is cutting around 12,000 jobs, or around six percent of its global workforce, it wrote in a company-wide email sent to employees. CEO Sundar Pichai said that he was “deeply sorry” to workers that will be let go and that it was a “difficult decision to set us up for the future.” The layoffs will be felt globally and across the entire company, and Pichai said he takes “full responsibility for the decisions that led us here.” 

Alphabet went on a hiring spree over the last few years during a period of “dramatic growth,” but Pichai said that “we hired for a different economic reality than the one we face today.” Over the past few weeks Microsoft, Amazon, Meta and others instituted equally painful and dramatic job cuts due to economic conditions. 

Google is the last of those to implement layoffs, thanks in part to its powerful ad and cloud-computing divisions. However, the company saw a 27 percent drop in profit last quarter compared to the year before, and Pichai said Alphabet would need to reduce expenses and hiring. However, activists and analysts called for more aggressive cuts, noting that the company’s headcount had gone up 20 percent since 2017, according to Bloomberg.

Pichai said that that employees would be paid during the full notification period of 60 days minimum. Alphabet will also offer severance packages starting at 16 weeks salary plus two weeks for every additional year at Google “and accelerate at least 16 weeks of GSU vesting.” It’ll also pay 2022 bonuses and remaining vacation time, while offering 6 months of healthcare, job placement services, and “immigration support for those affected.”

Over just the past two weeks, Microsoft, Amazon and Meta laid off 10,000, 18,000 and 11,000 employees respectively. Google has cut other expenses of late as well, shutting down Stadia, cancelling the next-generation Pixelbook laptops and more. It plans to focus even more strongly on AI, saying its “getting ready to share some entirely new experiences for users, developers and businesses.” 

T-Mobile data breach compromised 37 million customers’ data

T-Mobile has admitted that hackers were able to steal the information of around 37 million postpaid and prepaid customers in another major data breach. The carrier said in a regulatory filing that it discovered the issue on January 5th, but that it bel…

Epic and Match antitrust case against Google goes to trial November 6th

Epic Games and Match Group now have a court date for their antitrust case against Google. A Northern District of California judge has set the start of a jury trial for November 6th. Both Epic and Match accuse Google of abusing its control of Android app distribution through the Play Store by establishing unfair fees and requirements for in-app purchases. This comes alongside a lawsuit from 39 attorneys general as well as a customer class action suit demanding $4.7 billion in damages.

Epic sued Google in 2020 after the Android creator kicked Fortnite out of the Play Store for letting customers use an alternative in-app payment system. Match sued Google last year over the “exorbitant” store fee. Epic and Match consolidated their case and a filed motion last fall to expand their allegations, accusing Google of further antitrust violations by paying major developers hundreds of millions of dollars to keep their apps in the Play Store. 

Unlike Epic’s partially successful lawsuit against Apple, this case has to acknowledge that customers do have a choice. Where Apple requires that all regular app downloads go through the App Store, Android’s sideloading option lets customers install software without downloading it from Google. The issue, as you might imagine, is that those apps are both harder to install and less likely to be noticed when the Play Store is included by default on many Android phones.

Google denies misusing its power, and argues that the fees are necessary to maintain and invest in the Play Store. It maintains that the incentive program doesn’t forbid developers from launching third-party stores, and that its portal competes fairly. In December, Google called on the court to deny the expanded requests over timing and other issues.

Google has made some concessions, including a test program for Play Store billing alternatives. That pilot still gives Google a cut of each transaction, though, and it remains to be seen if moves like that will satisfy the court and regulators. As it is, the internet pioneer is facing a raft of other antitrust cases that include a Justice Department lawsuit from 2020. Even if Google prevails against Epic and Match, it may not escape unscathed.