Digital mental health company Cerebral is being investigated by the Federal Trade Commission, according to a letter sent by the agency and reviewed by the Federal Trade Commission. the The Wall Street Journal.
According to the WSJ, the FTC is investigating whether Cerebral engaged in deceptive or unfair marketing or advertising practices, including raising questions about programs the mental health company offers. Virtual continues to bill patients for subscriptions until they cancel.
Patients told the WSJ that they had trouble canceling accounts or getting refunds when they didn’t use the service.
In a statement for MobiHealthNewsCerebral said it is working with the FTC.
WHY IT IMPORTANT
The company has faced a wave of scrutiny over the past few months about prescribing practice for drugs like Adderall, social media marketing and it treat employees.
It is also facing another investigation into possible violations of the Controlled Substances Act. Brain confirms it has received a grand jury subpoena from the United States Attorney’s Office for the Eastern District of New York in early May.
“Just to be clear, at this time, no regulatory or law enforcement agency has accused Cerebral of violating any laws,” the company wrote in a statement at the time.
The brain has that word start pausing most prescriptions controlled substances and replace its old substances CEO and Co-Founder Kyle Robertson. The company is also recently announced a transition plan including a review of its clinical and marketing practices.
But the digital mental health company, has raised 300 million dollars in funding late last year, began to face backlash from payers. Forbes report Last week Aetna will cancel its contract with Cerebral in August. Optum said it will also remove the brain from its behavioral health network in late summer.
In The American Society of Telemedicine Association Annual Meeting & Exposition In early May, Dr David Mou, now the CEO of Cerebral, stood by their quality, but admitted that they had made some marketing mistakes.
