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The Los Angeles-based company agreed to pay $45 million to the Federal Trade Commission and settled allegations that it was fraudulently represented as a broker in the government’s healthcare program.
Mediaalpha has insisted on planning on websites like younternhealthinsurance.com and Afforedablecarecalifornia.org, as reported in Seamus Hughes’ court oversight, according to the federal complaint, but in fact it claims that “it doesn’t actually sell any consumers.”
“Instead, after harvesting consumer personal and contact information, the defendant will auction it off to telemarketers and other lead generators,” the complaint continues.
“As a result of this misconduct, those seeking treatment know that there is no reporting about the care they need,” the federal complaint further explained. “Other consumers learn about the deception when they face considerable unexpected medical costs.”
As a result, Mediaalpha had to hand over these websites to the FTC.
“Mediaalpha is also prohibited from misrepresenting that the products they are selling are affiliated with government-approved programs that do not exist or that Mediaalpha offers unverified benefits,” the FTC said on its website.
The company refused the claim in a statement posted on its website.
“We are pleased to put this issue behind us. We strongly oppose the FTC allegations, but we believe it will be in the best interests of Medialfa and its shareholders to resolve this issue,” the statement said. “Mediaalpha is constantly committed to transparency and compliance, and shares the FTC’s goal of preventing third-party misuse of the health market for those under 65. As part of this settlement, we have agreed to further strengthen our industry-leading compliance process in health under 65.”
Currently, the company can return to key principles as listed on its website.
“Mediaalpha was founded on a simple premise. It’s transparent and people will give you their trust.”
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