Telehealth was sold to us as the future: accessible, affordable healthcare from your own home. Companies like Cerebral, Inc. promised a lifeline for people struggling with depression, substance use disorders, and other sensitive conditions. But according to the Federal Trade Commission, Cerebral built its empire not on care, but on a foundation of deception designed to trap vulnerable consumers and misuse their most private data.

The U.S. government has brought a hammer down on Cerebral and its leadership. The official complaint lays bare a corporate strategy that prioritized growth at all costs. This involved making it easy to sign up but nearly impossible to leave, all while playing fast and loose with the personal health information of its users.

This was not a case of corporate policy run amok. The federal complaint points directly to the top. Kyle Robertson, Cerebral’s CEO from 2019 to 2022, was allegedly the chief architect of these harmful practices. The government states he wasn’t just a figurehead; he was hands-on, with direct authority over the policies that hurt consumers.

Robertson personally reviewed and approved company policies related to privacy, data disclosure, and security. He supervised the marketing team, providing detailed feedback on advertisements. He was even a member of the company’s Data Breach Response Team. The complaint makes it clear: the deceptive practices were a feature, not a bug, originating from the highest level of leadership.

This level of direct involvement makes the subsequent allegations even more disturbing. The person in charge of data security was also in charge of a “growth engine” that federal prosecutors now claim was built on misleading the very people it promised to help.

The damage here isn’t just financial. It’s a profound violation of trust. People seek mental health and substance use treatment in moments of vulnerability. They share information they wouldn’t tell their closest friends, trusting that it will be protected and used for their care. Cerebral is accused of taking that sacred trust and weaponizing it.

Imagine signing up for therapy or help with an opioid use disorder, only to find yourself trapped in a subscription you can’t cancel. The financial drain is one injury. The stress and anxiety of fighting a company for your own money while already in a fragile state is another. The fear that your most sensitive data was handled carelessly adds a layer of deep, lasting harm. This is the non-financial cost: the loss of dignity, the trauma of betrayal, and the chilling effect that makes people afraid to seek help in the future.

The language in the federal complaint is direct and unambiguous. It outlines a multi-faceted assault on consumer rights and privacy. These are not just accusations from angry customers; they are formal charges from the United States government.

The complaint details “failures to clearly and accurately disclose material terms related to subscription terms and auto-renewal, costs, data privacy, data security, cancellation, and refunds; failures to obtain consumers’ express informed consent relating to those material terms; and failures to provide a simple mechanism to stop recurring charges…”

The complaint also specifically invokes the Opioid Act, which prohibits any “unfair or deceptive act or practice with respect to any substance use disorder treatment service.” This highlights the severity of the alleged misconduct, targeting a population that is particularly at risk.

Public Health Corrosion

When a major telehealth provider for mental health engages in predatory behavior, it damages the entire healthcare ecosystem. It sows distrust in telehealth services, potentially preventing people from seeking care they desperately need. For those who were trapped in Cerebral’s system, the added financial stress and bureaucratic battles could easily worsen their underlying mental health conditions. This is a direct threat to public health, disguised as innovation.

Economic Inequality Exploitation

Subscription traps and confusing billing practices are tools that prey on the economically vulnerable. A person with a comfortable financial cushion might absorb an unwanted charge. For someone living paycheck to paycheck, an unexpected $85 recurring fee can be catastrophic, leading to overdrafts and spiraling debt. By making cancellation difficult, Cerebral’s model effectively transferred wealth from ordinary people to corporate coffers, exacerbating economic inequality.

The story doesn’t end with Kyle Robertson’s departure from Cerebral. According to the complaint, he founded a new telehealth company, Zealthy, Inc. The government details a bizarre and suspicious series of corporate maneuvers. Zealthy was founded, then filed to dissolve, then revoked the dissolution. It later changed its name to Gronk, Inc., which also filed for dissolution, yet the business continues to operate under the Zealthy name, running ad campaigns as recently as May 2024.

This corporate shell game suggests a deliberate attempt to obscure ownership and evade legal accountability. Robertson is not alone. He is joined by German Echeverry, M.D., and Bruno Health, P.A., the medical corporation working with Zealthy. This pattern demonstrates that the problem is not isolated to one “bad apple” company; it follows the executives who build these systems of exploitation.

This lawsuit is a critical first step, but accountability is never guaranteed. Power and profit are protected by complex legal structures. It’s our job to watch and remember.

Leadership to Watch

• Kyle Robertson (Former CEO, Cerebral; Founder/CEO, Zealthy)
• Alex Martelli (Former Director of Product, Cerebral)
• German Echeverry, M.D. (Senior Medical Director, Zealthy; President, Bruno Health)

Corporate Entities on Notice

• Cerebral, Inc.
• Zealthy, Inc. (a.k.a. Gronk, Inc.)
• Bruno Health, P.A.

Regulatory Bodies in Play

• Federal Trade Commission (FTC)

Venture-capital-fueled “disruptors” in healthcare have shown their true colors. They will compromise patient well-being and privacy for market share. The answer is not to trust the next shiny app. The answer is to demand robust regulation, support community-based and non-profit mental health services, and engage in local organizing to build systems of care that are accountable to people, not investors.