An online service allowing consumers to pay their medical bills failed to adequately inform them that it would also try to collect highly detailed medical information from their pharmacies, medical labs and insurance companies, the U.S. Federal Trade Commission said.

The FTC has reached a proposed settlement with PaymentsMD, an Atlanta health billing company, and former CEO Michael Hughes requiring the company to destroy any medical information it collected related to its separate online medical records service, Patient Health Report, the agency said Wednesday.

PaymentsMD “deceptively” used the sign-up process for its billing service to seek customers’ consent to obtain detailed medical information, the FTC said in a press release.

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