The FTC announced today a $100 million judgment against Assurance IQ for alleged deceptive practices targeting consumers seeking health insurance.
The FTC initiated the complaint, FTC v. Assurance IQ LLC, U.S. District Court, Western District of Washington, No. 25-01485, against Assurance IQ alleging violations under Section 5 of the FTC Act, 15 U.S.C. § 45 and the Telemarketing Sales Rule 16 C.F.R. Part 310 (TSR). The claims relate to how Assurance IQ marketed and sold health-related products — namely short-term medical and limited benefit plans – along with ancillary services like telemedicine, prescription discounts, dental and visions plans.
According to the order, Assurance IQ misrepresented key aspects — including coverage of preexisting conditions, the absence of benefit caps, and network access – violating both the FTC Act and TSR. Assurance marketed its plans as a way to substantially cut medical costs but failed to disclose significant coverage and benefits limitations, “leaving consumers exposed to unexpected and significant out-of-pocket healthcare expenses.”
Under the proposed order, Assurance IQ is also prohibited from making misrepresentations relating to health plans including:
- the extent of limits on coverage and benefits,
- the costs to the consumer to use, cancel, or return a health plan,
- that any plan or product is included at no additional cost with the purchase of a health plan;
- that any health plan is Affordable Care Act-compliant insurance; and
- that any health plan gives consumers access to provider networks that will reduce their medical bills and expenses.
The FTC voted unanimously (3-0) to approve the proposed final order against Assurance IQ. The complaint and order were filed in the U.S. District Court of the Central District of California and the stipulated final order must be approved by the District Court judge.
This enforcement sends a clear message: misleading marketing paired with aggressive lead generation can expose companies to both regulatory action AND TCPA liability. As TCPAWorld knows, back in August 2024, Assurance IQ was faced with a $21million TCPA settlement that took the company out of business. Prudential Financial paid the last multi-million dollar settlement and will now be responsible for paying yet another on behalf of its already shut-down Assurance IQ unit.