The Federal Trade Commission (FTC) has announced significant settlements with Assurance IQ and MediaAlpha, collectively totaling $145 million, in connection with allegations that the companies misled consumers seeking health insurance. These enforcement actions underscore the FTC's continuing focus on deceptive telemarketing and lead generation practices.
According to the FTC's complaint, Assurance IQ used deceptive telemarketing tactics to sell short-term and limited-benefit health plans. The company allegedly misrepresented key aspects of coverage, including falsely claiming that the plans covered preexisting conditions, imposed no limits on doctor visits or prescription drugs, and provided access to broad provider networks. The FTC asserted that these misrepresentations violated both the FTC Act and the Telemarketing Sales Rule (TSR). As part of the stipulated order, Assurance IQ agreed to pay $100 million and is now prohibited from making similar misrepresentations. The company must also obtain express informed consent from consumers before billing, and is required to have a reasonable basis for any coverage claims going forward.
The FTC also reached a separate $45 million settlement with MediaAlpha, a digital advertising firm that published websites and ads directing consumers to its marketing partners, including SImple Health Plans, LLC and Benefytt Technologies, Inc,, both of which are subject to separate FTC orders. MediaAlpha was accused of using misleading marketing strategies, including suggesting affiliation with government health programs through domains like ObamacarePlans.com and ad copy referring to a "Health Insurance Give Back Program." The company also allegedly used actors posing as medical professionals in its advertising content. The FTC charged MediaAlpha with violations of the FTC Act, Telemarketing Sales Rule, and the Impersonation Rule, which prohibits deceptive representations of government affiliation. In addition to the financial penalty, MediaAlpha must now clearly disclose that it is not affiliated with the government, obtain express consent before collecting or transferring consumer information, and relinquish misleading domain names.
These settlements send a clear message: health insurance marketing must be accurate, transparent, and substantiated. Companies engaged in lead generation—particularly in sensitive sectors like health care—should carefully examine their advertising claims, disclosures, and data collection practices. The FTC has made it clear that it will hold both advertisers and their marketing partners accountable for deceptive practices, regardless of whether the company is on the front lines of consumer interaction or operating behind the scenes.
Marketers should take note that regulators are not only scrutinizing direct misrepresentations, but also practices that give the false impression of government endorsement or involvement. With the growing complexity of digital ad ecosystems, liability can extend across the chain of distribution. Both advertisers and platforms must ensure that consent mechanisms are robust, that marketing materials are not misleading by omission or implication, and that all claims are backed by competent and reliable evidence.
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