Why Healthcare Apps in the US Are Facing Privacy Lawsuits

Healthcare apps have transformed how patients manage their health. From tracking vitals and storing medical records to connecting with providers and personalizing treatment plans, these tools have offered convenience and empowerment like never before. But as usage has surged, so too have serious concerns about privacy and data protection.

In recent years, numerous high-profile lawsuits have emerged in the United States accusing health and wellness apps of mishandling sensitive patient data, sharing it without proper consent, or failing to protect it from breaches. These legal challenges spotlight systemic issues in how healthcare apps collect, use, and secure extremely personal information.

This article explores the root causes behind these lawsuits, what types of privacy violations are at issue, why current regulations are proving inadequate, and how patients and developers can respond.

Why Healthcare App Privacy Matters

Healthcare apps handle some of the most sensitive personal information a person can share:

• Medical histories
• Diagnosis details
• Prescription records
• Genetic test results
• Biometric readings
• Mental health assessments
• Reproductive health data

Unlike most consumer apps, a breach involving health data can have deep emotional, financial, and social consequences. Health information is legally defined as Protected Health Information (PHI) under US federal law and carries strict protection requirements.

Surge in Healthcare App Usage

Healthcare app adoption has skyrocketed in the last decade. According to industry reports, more than 350,000 health and fitness apps were available worldwide by 2024, with millions of daily users in the United States alone.

Increasing mobile health engagement has brought undeniable benefits, but it has also magnified privacy and security risks.

The Legal Landscape: HIPAA and Beyond

Healthcare apps in the US are governed by a complex legal framework, including:

• Health Insurance Portability and Accountability Act (HIPAA)
• Federal Trade Commission (FTC) Act
• State privacy laws (e.g., CCPA in California)

HIPAA is the cornerstone of healthcare privacy protections. It imposes strict rules for covered entities and their business associates regarding PHI use, disclosure, and safeguarding.

However, whether health apps fall under HIPAA protections often depends on how they are structured and what services they provide. Many apps today are not considered covered entities or business associates under HIPAA at all, leaving gaps in legal accountability.

Types of Privacy Lawsuits Targeting Healthcare Apps

1. Failure to Obtain Valid Consent

Users must provide informed consent before an app collects or shares their health data. Lawsuits have alleged that numerous apps:

• Buried consent language in lengthy terms of service
• Collected data before consent
• Shared health information without clear disclosure

In some cases, app users claim they had no meaningful awareness of data sharing practices.

2. Improper Data Sharing With Third Parties

Several class action lawsuits accuse healthcare apps of sharing PHI or related metadata with third parties such as:

• Advertising networks
• Data brokers
• Analytics platforms
• Social media companies

These lawsuits typically assert that data sharing occurred without adequate user consent or legal basis.

3. Weak Data Security Leading to Breaches

Apps have been sued for failing to implement adequate security protections, resulting in:

• Unauthorized access
• Exposed health records
• Compromised user credentials
• Identity theft stemming from breached health data

Security weaknesses include poor encryption, weak authentication protocols, and insufficient vulnerability testing.

Case Studies: High-Profile Healthcare App Lawsuits

BetterHealth App Lawsuit (2024)

In 2024, a class action lawsuit alleged that BetterHealth, a widely used health data management app, shared users’ medical data with third-party advertising networks without explicit consent. Plaintiffs argued that personal health information was monetized without disclosure.

The case sparked nationwide concern about data commercialization under the guise of digital health services.

HeartTrack Data Breach Settlement (2025)

HeartTrack, a popular cardiac monitoring app, suffered a breach in 2023 that exposed users’ medical and location data. A lawsuit filed in early 2025 accused the company of failing to implement adequate security controls. As of publication, negotiations for a multi-million dollar settlement are underway.

Statistics on Healthcare Data Breaches

Category	Latest Figures
Healthcare data breaches in the US (past 3 years)	290+
Records exposed	60 million+
Average breach cost	$10.1 million annually
Patient records stolen for misuse	Growing year over year

Data breaches involving health data are among the most expensive and damaging, often surpassing financial or retail breaches.

Why Traditional Privacy Protections Are Falling Short

1. HIPAA’s Limited Scope

Although HIPAA provides strong protections, it only applies to:

• Healthcare providers
• Health plans
• Health clearinghouses
• Business associates

Many healthcare apps operate outside this ecosystem or only partially qualify, leaving users unprotected.

2. Ambiguous Terms of Service

Legal disclaimers and consent forms are often long, complex, and difficult for average users to understand. This ambiguity makes it challenging for users to know how their data is used and with whom it is shared.

3. Data Monetization Practices

Health app developers sometimes monetize data by sharing it with third parties. Without strict regulatory limits, this practice can run afoul of privacy expectations and inspire litigation.

4. Weak Encryption and Security Standards

Many apps prioritize user experience and rapid deployment over robust security measures. This can lead to vulnerabilities that expose user data to hackers and unauthorized entities.

External Regulations and Consumer Protection

Consumer advocates argue that US privacy laws are outdated and fail to protect digital health data adequately. By contrast, the European Union’s General Data Protection Regulation (GDPR) imposes stringent requirements on health data processing and sets stiff penalties for violations.

Learn more about GDPR’s approach to health data privacy from this resource:

In the US, state-level privacy laws like the California Consumer Privacy Act (CCPA) are beginning to fill some gaps, but coverage remains inconsistent nationwide.

Risks for Consumers

Users of healthcare apps may face:

• Identity theft
• Insurance discrimination
• Targeted marketing based on health conditions
• Loss of control over personal health narratives
• Psychological harm from unauthorized disclosure

Healthcare data is inherently sensitive, and misuse can have real-world consequences that extend beyond financial loss.

What Developers Must Do to Reduce Legal Risk

Healthcare app developers should adopt comprehensive privacy and security practices, including:

1. Clear and Transparent Consent

Users should receive concise, understandable information about:

• What data is collected
• How it is used
• Who will have access
• How users can opt out

2. Strong Encryption and Access Controls

Security measures should include:

• End-to-end encryption
• Multi-factor authentication
• Continuous vulnerability testing
• Incident response planning

3. Regular Privacy Audits

Periodic independent audits can uncover compliance gaps before lawsuits do.

4. Minimization of Data Collection

Collect only what is essential to app functionality and actively avoid storing unnecessary health data.

Best Practices for Patients to Protect Their Health Data

Patients should:

• Review app permissions carefully
• Avoid sharing unnecessary health details
• Use apps that support strong security features
• Regularly review privacy policies
• Remove apps no longer in use

Data protection is a shared responsibility between developers and users.

The Future of Healthcare App Privacy

Legal experts predict a surge in privacy regulations specific to mobile health data. Proposed changes may include:

• Stronger federal health data privacy law
• Mandatory breach notification timelines
• Restrictions on data sharing for advertising
• Greater enforcement authority for regulators

As public awareness of digital privacy grows, consumer demand will drive stronger protections.

Frequently Asked Questions (FAQs)

Do healthcare apps have to follow HIPAA?

Only if they qualify as covered entities or business associates. Many consumer health apps do not fall under HIPAA’s definition, creating protection gaps.

What should I do if my health data is exposed?

Immediately change passwords, notify relevant providers, monitor for fraudulent activity, and consider legal advice if harm occurs.

Can healthcare apps share data with advertisers?

Only if users give informed consent. Sharing without clear permission may result in legal action.

Are there federal laws specifically about health app data?

Currently, no federal law uniformly governs health app data. HIPAA covers certain actors, but a comprehensive digital health privacy standard is still emerging.

Is my data safe if the app has strong security features?

Security features reduce risk, but users should still review privacy practices and consent mechanisms.

Final Thoughts

Healthcare apps in the United States are at a legal crossroads. The tremendous benefits they offer come with significant responsibility. When privacy protections lag behind technological innovation, users hurt the most. And as lawsuits continue to unfold, both consumers and developers are learning hard lessons about transparency, trust, and the true value of personal health data protection.