Tracking Pixels May Do More Harm Than Good 

Tiny, invisible dots of code called tracking pixels are embedded into websites and emails to monitor user behavior. For companies, the data collected from these pixels, such as clicks, scrolling duration, or time spent on a page, is invaluable.

However, being tracked without consent or even awareness feels like a betrayal for consumers. Regulators and consumers are responding with class-action lawsuits and multimillion-dollar fines.  

The Pixels Aren’t the Problem — Secrecy Is 

Tracking pixels themselves aren’t inherently harmful. They can enhance website performance, personalize the user experience, and measure the success of digital campaigns. The real issue arises when companies fail to disclose that tracking is taking place. 

This lack of transparency leaves users feeling spied on. As a recent Forbes article pointed out, even companies that don’t intend to misuse data can face severe consequences if they fail to clearly communicate how and why tracking pixels are used. 

Undisclosed Tracking Pixels Lead to Hefty Fines 

GoodRX and BetterHealth are just a few recent examples of this. The popular prescription discount platform GoodRX was caught sharing sensitive health information with Google and Facebook through tracking pixels. Users searching for prescriptions received targeted ads with no idea what was happening behind the scenes of their searches.  

In 2023, the FTC barred GoodRX from sharing consumers’ sensitive health information for advertising and fined the company $1.5 million. A year later, in 2024, BetterHelp agreed to pay $7.8 million to settle FTC allegations that the online therapy provider used and shared consumers’ health data for advertising. 

Health Care and HIPAA: Regulatory Scrutiny Intensifies 

In December 2022, the Office for Civil Rights issued guidance for HIPAA-regulated entities that the use of website pixels and trackers could be compromising patient information, and that the vendors providing these services might be acting as business associates. 

Despite this, a 2024 analysis by Lokker found that 33% of health care websites still use Meta Pixel tracking code, exposing themselves to regulatory risk, legal liability, and potential data breaches. 

Beyond Health Care: Personal Data Should Stay Personal 

The concern extends well beyond the health care sector. Tracking pixels can collect highly personal data, from browsing behavior and time spent on a webpage to navigation patterns and purchase intent. 

Websites that function as e-commerce sites to capture payments and make smooth customer transactions face additional issues with website trackers. Learn more in our blog article: PCI Compliance and Third-Party Trackers: Risks, Challenges, and Best Practices. 

Best Practices for Using Tracking Pixels Responsibly 

If your business uses tracking pixels, here are some ways to protect your brand and build consumer trust: 

1. Disclose Everything: If you use tracking pixels, state it clearly in your privacy policy. 
2. Get Consent: Use banners or opt-in prompts informing users before tracking begins.
3. Limit Data Collection: Only collect what you truly need to serve users. 
4. Audit Regularly: Review your tracking configurations often. Regulations evolve, and so should your compliance practices.
5. Educate Your Users: Offer clear explanations about how tracking works and why it’s used. Transparency builds trust. 
6. Conduct Comprehensive Scans: TrackerReveal is an excellent program for identifying website trackers, managing risks, and upholding compliance.