ARTICLE
13 February 2023

Web Tracking Creates A Web Of Data Privacy Risks

SM
Sheppard Mullin Richter & Hampton
Contributor
Sheppard Mullin is a full service Global 100 firm with over 1,000 attorneys in 16 offices located in the United States, Europe and Asia. Since 1927, companies have turned to Sheppard Mullin to handle corporate and technology matters, high stakes litigation and complex financial transactions. In the US, the firm’s clients include more than half of the Fortune 100.
Regulatory enforcement and large litigation relating to the use of third party trackers on companies' websites and applications have been on the rise. Tracking often occurs without the companies' knowledge or consent.
United States Privacy
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Regulatory enforcement and large litigation relating to the use of third party trackers on companies' websites and applications have been on the rise. Tracking often occurs without the companies' knowledge or consent. Third party tracking on hospital and provider websites has specifically garnered notable media attention. Recently, there has been significant activity by the Federal Trade Commission ("FTC") under the Health Breach Notification Rule for unauthorized sharing of personal information. It has begun to penalize and impose steep corrective actions, including long-impacting future restrictions, for such violations.

A 2021 study of the largest for-profit, nonprofit and governmental hospitals in the United States found that all hospitals used advertisement trackers, and 90% of the hospitals used third-party cookies. In many instances, these third-party trackers and cookies accessed and collected hospital user data. More concerning, such user data may include the user's personal contact information, provider and insurance information, and diagnoses.

These third party trackers, deployed and used predominantly by technology companies or social media companies, pose a significant challenge for health care companies, and compliance issues associated with third party tracking are only just beginning. Notably, HHS' Office of Civil Rights ("OCR"), recently released a guidance on the use of such trackers by HIPAA-regulated entities, like hospitals and health plans. A summary of OCR's guidance may be found in our prior blog post, "OCR Releases Guidance on Use of Tracking Technologies," here. Furthermore, the rise of social media has brought increased OCR scrutiny of providers' and other covered entities' online activities and communications on social media and other public platforms.

For an in-depth discussion of the legal and regulatory considerations around website technology and third-party tracking in healthcare please join us for a complimentary webinar on February 9th, from 2:00 to 3:00 pm ET. Click here to register.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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ARTICLE
13 February 2023

Web Tracking Creates A Web Of Data Privacy Risks

United States Privacy
Contributor
Sheppard Mullin is a full service Global 100 firm with over 1,000 attorneys in 16 offices located in the United States, Europe and Asia. Since 1927, companies have turned to Sheppard Mullin to handle corporate and technology matters, high stakes litigation and complex financial transactions. In the US, the firm’s clients include more than half of the Fortune 100.
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