WSJ: Digital mental health company Cerebral is under investigation by the FTC

The digital mental health company is under investigation by the Cerebral Federal Trade Commission, according to a letter from the agency and reviewed The The Wall Street Journal.

According to the WSJ, the FTC is investigating whether Cerebral was involved in fraudulent or unfair marketing or advertising practices, where virtual mental health companies continue to bill patients for subscriptions until they cancel, including questioning those programs.

Patients have told WSJ that they are having trouble canceling or refunding their accounts when they do not use the services.

In a statement MobiHealthNewsCerebral says it is cooperating with the FTC.

Why it matters

The company has been facing a wave of investigations over the past few months Addiction determination for drugs like Adderall, its social media marketing and treatment of employees.

It is facing another investigation into possible violations of regulated substances law. Cerebral confirmed it Subpona received a grand jury from the U.S. Attorney’s Office for the Eastern District of New York in early May.

“To be clear, at this time, no regulatory or law enforcement authority has charged Cerebral with any violations,” the company said in a statement at the time.

There are from the cerebral Most of the prescription substances began to be discontinued and replaced by its former CEO and co-founder Kyle Robertson. The company also recently announced a conversion plan that includes reviewing its clinical and marketing practices.

But the digital mental health agency, which has raised At the end of last year, the 300 million fund began to receive a push from providers. Forbes It was reported last week that Aetna was canceling her contract with Cerebral in August. Optam says it will remove the cerebral from its behavioral health network by the end of the summer.

A. At the American Telemedicine Association’s annual conference and expo in early May, Dr. David Mau, now the CEO of Cerebral, stood up for their standards, but acknowledged that they had done something wrong with marketing.

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