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June 14 (Reuters) – The U.S. Federal Trade Fee (FTC) has begun an investigation into SoftBank-backed mental-wellbeing startup Cerebral Inc, the Wall Street Journal reported on Tuesday, citing a letter the antitrust overall body sent to the business.
In the letter dated June 1, the FTC said it was investigating irrespective of whether the corporation engaged in misleading or unfair procedures linked to advertising or marketing of psychological-health and fitness expert services, in accordance to the WSJ report.
The letter requested Cerebral to preserve documents and also sought info related to packages where by the firm continues to monthly bill prospects a membership payment right until the shopper cancels, the report mentioned.
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Cerebral declined to verify the FTC probe but said it is cooperating with the antitrust body.
The FTC was not right away out there for remark.
The enterprise mentioned in December it had raised $300 million in a funding round led by SoftBank Eyesight Fund 2, lifting its valuation 4-fold to $4.8 billion in much less than 6 months immediately after its last funds elevate. examine much more
Cerebral supplies mental wellness solutions, which include consultation and prescription of medicines, as a result of its telehealth platform.
Telehealth platforms’ prescriptions have been under scrutiny, with Walmart Inc (WMT.N) and CVS Health and fitness Corp (CVS.N) final month saying they would halt filling prescriptions for controlled substances issued by telehealth startups Cerebral Inc and Accomplished Well being. study a lot more
The WSJ last thirty day period described that Cerebral experienced been issued a subpoena by federal prosecutors as aspect of an investigation into possible violations of the Managed Substances Act.
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Reporting by Leroy Leo and Kannaki Deka in Bengaluru Editing by Shinjini Ganguli and Maju Samuel
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