The Federal Trade Commission (FTC) has taken strong action against two companies, Assurance IQ and MediaAlpha, accusing them of misleading consumers about health insurance plans and bombarding them with unwanted robocalls.
The FTC announced on Thursday that it has reached settlements totaling $145 million. This move is a big win for shoppers, helping protect them from unfair marketing tricks and making sure companies play fair.
Assurance IQ agreed to pay $100 million, while MediaAlpha will pay $45 million, IndexBox said.
Both companies were charged with violating the FTC Act and telemarketing rules by providing false or confusing information about healthcare services and abusing consumer data.
Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, emphasized the importance of cracking down on misleading lead-generation practices.
He said, "Coherently and systematically addressing unlawful lead generation is a priority for the FTC, especially in connection to health insurance, one of the most expensive and important products consumers buy to protect themselves and their families."
Today, the @FTC announced settlements totaling $145 million with two companies that misled millions of consumers looking for health insurance. These two firms preyed on those who had one simple goal: the best, most affordable coverage for themselves and their families.
— Andrew Ferguson (@AFergusonFTC) August 7, 2025
FTC Takes Action Against MediaAlpha's Aggressive Telemarketing Practices
MediaAlpha, a tech company, was accused of collecting personal information from people with promises of personalized health insurance options but instead selling their contact details to telemarketers and flooding them with repeated robocalls.
FTC lawyers noted that many consumers received dozens or even hundreds of calls within days, with the calls continuing for months.
Assurance IQ, which was bought by Prudential Financial in 2019 but later shut down, misled customers by falsely claiming that its health plans covered preexisting conditions.
Prudential clarified that these issues were related to Assurance IQ's past operations and are not tied to Prudential itself, stating,
"None of the allegations are against Prudential, but rather involve the historical operations of an acquired business that is no longer operational."
Chris Bissex, the FTC's deputy director of public affairs, told Fox News Digital that these settlements show how the agency is actively protecting consumers in the healthcare market.
Bissex emphasized that unfair and deceptive practices in healthcare are especially troubling because they can affect both people's finances and their well-being.
"These settlements represent one of the many ways the FTC is looking out for consumers in the healthcare space."
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