• The Wall Street Journal has reported that the Federal Trade Commission (FTC) has opened up a formal investigation into telepsychiatry provider Cerebral’s business practices. 

• As per a letter sent to the company by the FTC, the investigation will seek to ascertain if the company engaged in deceptive or unfair practices related to advertising or marketing of mental health services. The letter went on to state that the company is directed to preserve its documents. The FTC is also looking for information on whether the company engaged in “negative option practices,” where Cerebral would continue to charge customers a recurring subscription fee until they cancel the service.

<ul><li>This investigation follows a string of news relating to Cerebral regarding its prescription requirements being too lenient ; it pausing new prescriptions , then halting all prescriptions following formal investigations into its practices ; and its CEO being replaced and vendor partners halting the fulfilling of prescriptions .</ul>

• The company, in its responses, stated that it intends to fully cooperate with the FTC.