FTC Secures $145M Settlement Against Assurance IQ, MediaAlpha for Deceptive Robocalls

The Federal Trade Commission (FTC) has secured $145 million in settlements from two companies, Assurance IQ and MediaAlpha, accused of misleading consumers about health insurance products and bombarding them with robocalls. Assurance IQ, a former Prudential Financial subsidiary, agreed to pay $100 million after allegedly misrepresenting health plans, including falsely advertising coverage for preexisting conditions and selling limited-benefit plans that left consumers with unexpected medical bills. MediaAlpha agreed to pay $45 million for selling consumer contact information to telemarketers and using aggressive robocalling tactics without providing the promised health insurance options. The FTC's actions highlight ongoing concerns about unlawful lead generation and deceptive telemarketing practices in the health insurance marketplace, which have led to an 18% increase in consumer complaints related to deceptive marketing. FTC officials emphasized their commitment to systematically addressing these violations as part of broader consumer protection efforts. These settlements also impose stricter compliance measures, including bans on certain telemarketing methods and requirements for clear advertising disclosures.