The Federal Trade Commission (FTC) reports that mobile apps need to provide consumers with more disclosures, and also protect the privacy and security of consumer data–thus adding to the regulatory burden already imposed for health apps by the FDA’s mobile medical app regulation. The FTC, in its Staff Report on Mobile Shopping Apps Found Disclosures to Consumers Are Lacking, provides the following recommendations regarding app disclosures:
- Apps should make clear consumers’ rights and liability limits for unauthorized, fraudulent, or erroneous transactions.
- Apps should more clearly describe how they collect, use, and share consumer data.
- Companies should ensure that their data security promises translate into sound data security practices.
Recall that the FDA can regulate certain health apps as medical devices (see Health Apps as Medical Devices: What It Means for Consumers).
FTC is doing good work making sure that clear and conspicuous disclosures and disclaimers help ensure that consumers get information that is truthful and non-misleading.
However, at the same time, for small companies, the regulatory burden can be intense. Both FDA and FTC regulatory issues must be taken into consideration when launching any healthcare or health & wellness product.
Clear legal guidance is key to moving a product to market, or through the trillion-dollar health & wellness industry.
Contact our healthcare law and FDA attorneys for legal advice relevant to your healthcare venture.
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