Insights and Analysis
AI-washing – when AI hype becomes a litigation risk
The California Attorney General announced a $1.55 million settlement with Healthline Media, LLC in connection with cross-context behavioral advertising resulting from the purported failure of opt-out mechanisms, improper sharing of health-related data with third parties, and inadequate third-party data-sharing contracts. In addition to the monetary penalty, the settlement requires Healthline to provide clear consumer notices, confirm it is honoring opt-out requests, and limit its sharing of health information. This case signals increased regulatory scrutiny of digital health platforms and publishers of health-related content, a broader interpretation of health-related data under the California Consumer Privacy Act (CCPA), and a growing emphasis on vendor accountability and the functionality of consent tools.
California Attorney General Rob Bonta (“AG”) announced a $1.55 million settlement with Healthline Media, LLC (“Healthline”) on July 1, 2025. Healthline is a digital health and wellness publisher that provides health content and lifestyle guidance through various platforms such as Healthline.com. This marks the largest fine to date under the CCPA and underscores the heightened regulator focus on the data handling practices of digital health platforms and health-related publishers. The main allegations against Healthline were:
In addition to the landmark fine, the settlement agreement imposed the following injunctive provisions: (1) Healthline must notify consumers when it sells or shares their personal information—such as through online tracking—and must honor opt-out requests; (2) Healthline may not sell or share personal information in a way that reveals a consumer is viewing a specific article about a diagnosed medical condition, unless an exemption under the CCPA applies; and (3) if Healthline uses or discloses consumers’ sensitive personal information for advertising, it must provide clear notice of this use, inform consumers of their right to limit such use, and may not use sensitive data for such purposes before that notice has been provided—unless permitted by law—and offer required opt-out links.
It’s noteworthy that the last of these provisions focuses on sensitive personal information despite the AG never explicitly calling the health-related browsing data at issue sensitive personal information. This settlement may indicate that the California AG is starting to view health-related information with additional sensitivity under the CCPA, even if it does not satisfy the definition of “sensitive personal information” under the CCPA (which would trigger specific rights and compliance obligations). It is unclear if this will lead to a broader interpretation of this type of health-related data as sensitive personal information, potentially to include a visit to a health diagnosis-related webpage, similar to Washington’s My Health My Data Act, or if the CA AG’s approach is limited to the facts of this case. What seems more clear is that this settlement is part of a trend in regulator focus on health-related sites and services, including their sharing of consumer data for advertising and the effectiveness of privacy controls such as opt-out mechanisms and cookie banners.
In light of these developments, companies with health-related websites may consider the following practices going forward:
Authored by Melissa Bianchi, Melissa Levine, Donald DePass, Aaron Lariviere, Paige Dunn, and Surya Swaroop.