Consumer News: Insurance is a growing affordability issue for homebuyers

The rule requiring health apps to report certain data breaches remains in effect

By Mark Huffman of ConsumerAffairs

• The FTC has rescinded a 2021 policy statement addressing data breaches involving health apps, fitness trackers, and connected devices.

• The agency says the change does not eliminate breach protections because those requirements were incorporated into an updated federal rule in 2024.

• Consumers should not assume health apps have the same comprehensive privacy protections that apply to doctors, hospitals, and health insurers under HIPAA.

The Federal Trade Commission (FTC) has withdrawn a policy statement explaining how federal breach-notification requirements apply to health apps and connected devices but that does not mean app companies are suddenly free to conceal breaches.

The commission rescinded its 2021 Statement on Breaches by Health Apps and Other Connected Devices on September 9. It called the guidance obsolete because the agency amended its legally enforceable Health Breach Notification Rule in 2024.

Those amendments expressly cover many health apps, fitness trackers, and other products that collect consumers health information.

In practical terms, the policy document is going away, but the underlying notification requirements remain.

What the rule requires

The FTCs rule generally applies to companies that maintain electronic personal health records but are not regulated by the Health Insurance Portability and Accountability Act, better known as HIPAA.

Covered companies may include makers of fitness, diet, medication, fertility, and health-monitoring apps. Connected blood-pressure cuffs, glucose monitors, and wearable fitness devices may also fall under the rule.

When a company experiences a breach of unsecured, personally identifiable health information, it generally must notify:

• Each affected consumer;

• The FTC; and

• News organizations in certain cases involving at least 500 people in a state or territory.

Consumer notices must ordinarily be sent without unreasonable delay and no later than 60 days after the breach is discovered.

The rule covers more than conventional computer hacking. An apps unauthorized disclosure of identifiable health information to an advertising platform or another company may also qualify as a breach.

Does the FTC action weaken consumer protection?

On its own, the withdrawal does not repeal the Health Breach Notification Rule or the 2024 amendments.

The FTC said the earlier policy statement became unnecessary after the rule was updated. The formal regulation now makes clear that health apps and connected devices can be subject to its requirements.

However, the development highlights a continuing source of confusion: Information entered into a commercial health app is not necessarily protected by HIPAA.

HIPAA generally applies to health plans, healthcare providers, and certain companies that handle information on their behalf. An independently downloaded fitness or fertility app may operate outside that system.

The FTC can still act against companies that fail to provide required breach notices or make misleading promises about how they collect, protect, or share health data.

Sensitive information may extend beyond medical records

Health apps can collect intimate information, including diagnoses, medication use, menstrual cycles, pregnancies, miscarriages, mental health symptoms, heart rates, and sleeping patterns.

They may also collect email addresses, birth dates, precise locations, mobile-device identifiers, and information obtained from connected devices.

Even when a consumers name is not attached, several pieces of information can sometimes be combined to identify that person. Health data used for advertising or other unauthorized purposes can expose consumers to embarrassment, discrimination, , and medical identity theft.

What consumers can do

Before downloading an app, consumers should review its privacy policy and look for a clear explanation of:

• What information is collected;

• Whether information is sold or shared;

• Which companies receive it;

• How long the data is retained; and

• Whether users can delete their information and accounts.

Consumers should also review app permissions and turn off access to location, contacts, photos, or other data that is not necessary for the service. Apps and phone operating systems should be updated regularly to install security fixes.

Anyone receiving a health-data breach notice should change affected passwords and avoid reusing the same password elsewhere. If Social Security numbers, insurance information, or financial accounts were exposed, additional steps may include freezing credit, monitoring insurance statements, and checking medical records for unfamiliar treatment or claims.

The FTCs action may sound like a retreat from health-app oversight, but the agency says the operative breach requirements remain intact. The larger concern for consumers is that those requirements mainly guarantee notification after certain breaches not complete control over how every health app collects and uses sensitive information.

These states offer the biggest advantage of a paid-off mortgage

By Mark Huffman of ConsumerAffairs

• Investopedia estimates a mortgage-free single retiree needs about $693,000 in savings for a comfortable retirement.

• The estimated requirement ranges from $572,000 in Arkansas to $909,000 in New Jersey.

• Even without a mortgage, homeowners must budget for taxes, insurance, utilities, and repairs.

Older homeowners are often told they need $1 million or more to retire comfortably. A new analysis suggests that target may be lower for people who have finished paying for their homes but the answer depends heavily on where they live.

An Investopedia study estimates that a single homeowner without a mortgage needs approximately $693,000 in retirement savings, on average. A mortgage-free couple needs about $870,000.

The findings illustrate how eliminating a mortgage payment can change the retirement equation. Census data cited in the report show that older homeowners without mortgages have median housing expenses of $658 a month. Those still paying mortgages spend a median of $1,736.

But the national averages can be misleading because living costs vary widely across the country.

Arkansas offers the lowest target

Arkansas had the lowest estimated savings requirement for a single mortgage-free retiree, at approximately $572,000. Louisiana, North Dakota, Mississippi, and Tennessee followed, with each requiring less than $590,000 under the studys assumptions.

New Jersey had the highest estimate at about $909,000. Other high-cost locations included New York at $840,000, Washington, D.C., at $834,000, Massachusetts at $826,000, Connecticut at $819,000, and New Hampshire at $814,000.

For couples, Investopedia calculated that the amount required for a comfortable retirement ranges from approximately $700,000 in the least expensive state to $1.18 million in the most expensive.

The differences mean that two retirees with identical savings and Social Security benefits could have very different financial experiences depending on where they live.

Mortgage-free homes still produce bills

Paying off a house eliminates the principal and interest payment, but not the other costs of homeownership.

Property taxes, homeowners insurance, utility bills, association fees, and routine maintenance continue throughout retirement. Investopedia found that monthly housing expenses for older mortgage-free homeowners range from about $398 in West Virginia to more than $1,200 in New Jersey.

Unexpected repairs can also disrupt a carefully planned retirement budget. A new roof, plumbing failure, or heating-system replacement can cost thousands of dollars, making an emergency fund important even for consumers who own their homes outright.

Retirees should also consider whether their current home will remain affordable and practical as they age. A large property may require more upkeep, while a home with stairs could eventually need accessibility modifications.

The assumptions behind the numbers

Investopedia calculated the estimates using state-level living expenses, average Social Security income, and the 4% withdrawal rule.

The analysis assumed annual Social Security benefits of $23,704 for a single retiree and $37,713 for a couple. It calculated the difference between that income and estimated expenses, then multiplied the annual shortfall by 25 the equivalent of taking a 4% annual withdrawal.

The estimates cover financial savings and investments. They do not count the value of the home itself.

Consumers should treat the figures as general benchmarks, not as personalized savings goals. A retirees actual needs may be higher or lower depending on healthcare expenses, taxes, lifestyle, Social Security benefits, and other income sources.

The studys main takeaway is that retirement planning involves more than reaching a single savings number. Paying off a mortgage can reduce monthly expenses significantly, but local taxes, insurance costs, and other bills will help determine how far those savings ultimately go.

A new survey finds most kids will put down their devices for the right alternative

• Screen-time battles are common: 70% of parents surveyed said conflicts over screens happen at least weekly, while 51% said recreational screen time has increased over the past year.

• Kids may be more willing to unplug than parents think: 91% of parents said their children would likely put down their screens for a fun family game.

• Don't make screen-free time feel like punishment: The better strategy is to make the alternative genuinely appealing and give kids some control over what the family does.

If telling your kids to put down their phones or tablets immediately triggers an argument, here's a different approach: Stop talking about the screens.

That's the advice Dave Campbell, founder and CEO of Taco Cat Games, gave me when I asked him what parents often get wrong when trying to pry kids away from their devices.

Instead of making putting down the screen the goal, make the activity itself the draw, Campbell told ConsumerAffairs. It's a timely suggestion given what parents themselves are reporting.

A new survey of more than 400 parents and caregivers found 70% experience disagreements or conflicts over screen time at least weekly, while 51% said their children's recreational screen time has increased over the past year.

But there's another number that caught my attention: 91% said their kids would likely put down their screens for a fun family game.

Nearly three-quarters also said their children are more engaged during family game time than during screen time.

So I asked Campbell, if kids really are willing to put their devices down, how can parents make that happen without turning it into another battle?

His advice was surprisingly simple: Give them something they'd rather do.

Don't sell it as a 'screen-free' activity

That becomes particularly relevant as parents start thinking about holiday gifts. The survey found 98% of parents are considering screen-free gifts for their children this holiday season.

But Campbell says parents can undermine those purchases if they present them as medicine for too much screen time.

A new game is much more appealing when its presented as something the family gets to do together, rather than something kids are getting because they need to spend less time on a device, Campbell told me.

In other words, his advice is to not make the screen part of the conversation. Instead, put a game on the table after dinner, let a child choose what everyone plays, or make game night part of the family's normal routine.

Parents may be looking for screen-free activities, but the activity still has to be fun enough that kids want to do it, Campbell said.

That's a useful rule when shopping, too. Don't buy a toy or game simply because it doesn't have a charging cable. Ask yourself whether your child would actually choose to use it.

Pro tip: Make screens physically less convenient. Have everyone (adults included) put phones in a basket or charging spot during game night. Kids are more likely to buy-in when the rule applies to parents, too.

The best game has the shortest instructions

One of the mistakes parents can make is choosing an activity that's technically screen-free but requires so much effort that nobody wants to do it.

Campbell said families face practical barriers including limited time and energy, children of different ages and interests, and activities that are simply too complicated.

The games that stick are usually easy to understand, get kids involved quickly, and give them a reason to keep playing, he said.

In other words, a game doesn't have to be elaborate to compete with TikTok, YouTube, or a video game. In fact, requiring a 10-minute rules explanation before anyone can start will usually work against you.

Pro tip: Before buying a game as a gift, check its recommended ages, estimated playing time, and complexity. If your family tends to lose interest quickly, look for something that can be explained and started within a few minutes.

Try this seven-day screen-time experiment

I also asked Campbell to come up with a simple seven-day challenge families could use to determine whether game night can realistically reduce recreational screen time. Importantly, his experiment doesn't start by confiscating anybody's phone.

For the first couple of days, simply observe your family's normal recreational screen habits without trying to change them.

Then choose two or three nights during the rest of the week and play a game together for just 10 to 20 minutes. Pick a time when everyone is already together, such as after dinner, and give the kids some ownership over what you play.

Have children of different ages? Campbell says it's fine to make small adjustments to the rules so everyone can participate.

Then, at the end of the week, ask yourself two questions:

• Did we actually spend less recreational time on screens?

• And did everyone enjoy the alternative?

That second question may be the more important one because you're looking for something the family will willingly do again.

Pro tip: Try using the one-round rule. Instead of committing everyone to an entire game, agree to play just one round to start. If nobody's having fun, stop. Removing the commitment can make reluctant kids more willing to give the game a shot.

Don't turn game night into another screen-time rule

There's one more part of Campbell's challenge that parents may find difficult, which is to keep the rules light.

This means not requiring kids to finish a game before they can have screen time. Don't mandate that everyone play for a certain amount of time. And try not to turn every game into a serious competition.

With 70% of surveyed parents already reporting screen-time conflicts at least weekly, the idea is to avoid creating yet another reason to argue about devices.

If kids are having fun, getting them to put the screen down becomes a lot easier, Campbell said.

That's also a useful takeaway as parents start shopping for screen-free holiday gifts.

A screen-free label isn't what makes a toy, game, or activity capable of competing with a phone. The real test is much simpler. When given the choice, does your kid actually want to do it again?

Researchers watched children play with talking AI toys and found kids quickly started testing just how far they could push them

• Kids initially treated AI toys like new friends, asking their names, birthdays, and favorite things.

• However, then, the interactions changed, as some children insulted the toys, tried to trick them, and even physically provoked them to see how they'd respond.

• The toys rarely pushed back, raising questions about what kids may learn from relationships with AI companions that tolerate behavior humans wouldn't.

Give a kid a talking AI toy and what happens? At first they might try to make a new friend.

But give them a little more time and they may start trying to figure out just how much abuse their new AI buddy will take.

Researchers from the University of Washington and Rutgers University recently watched eight children between the ages of 6 and 11 interact with three AI-powered plush toys from Curio.

The toys use generative AI to carry on conversations, remember previous interactions, and personalize their responses.

Researchers wanted to understand something we're likely to hear a lot more about as AI moves into the toy box: How do kids actually interact with a toy that can talk back?

The answer was surprisingly complicated.

First came friendship

Initially, many of the interactions looked a lot like two kids meeting for the first time. Children asked the toys their names, birthdays, and favorite things and tried to find common interests.

But once the novelty wore off, some kids started testing the technology.

They asked increasingly difficult questions and tried to figure out what the toy knew and what would make it react.

Then things got more confrontational. Children called the toys names including "ugly," "dumb," and "evil." Some physically poked or provoked them. In other words, the AI toy went from a potential buddy to more of a technological punching bag.

The toys didn't react the way another kid might

Rather than getting angry, setting boundaries, or refusing to continue the conversation, the AI tended to remain friendly, apologize, or steer the conversation elsewhere.

And that's something researchers believe deserves more attention.

A child who repeatedly insults another child will probably get some immediate feedback. But an AI toy designed to remain endlessly agreeable may teach a very different lesson about how relationships work and offer some insights into bullying.

Researchers also found that kids were actively trying to understand what these toys actually were. They would sometimes treat them as social companions and other times they clearly recognized them as machines they could experiment with.

Don't panic over eight kids

There are some major limitations here:

• Only eight children participated in the study.

• They interacted with the toys during two research sessions.

• Researchers examined toys from just one company.

So this study doesn't tell us that AI toys make children mean or that kids who play with them will start treating people differently.

Instead, it offers an early glimpse into a question parents may increasingly have to consider as conversational AI moves from computer screens into stuffed animals.

And behavior isn't the only concern. Separate research, published this year, reviewed 51 studies involving AI and connected toys and identified concerns involving privacy, cybersecurity, data collection, and children's tendency to place trust in toys that can behave like social companions.

What parents should consider

Before buying an AI-powered toy, find out whether it has a microphone or camera, what information it collects, whether conversations are stored, and whether that information is shared with third parties.

It's also worth actually watching your child use it. Ask them what they think the toy is, whether they believe it's a friend, and whether they think what they tell it is private.

Because the biggest difference between Teddy Ruxpin and the newest generation of talking toys isn't simply that today's toys can answer back. It's that kids may start forming relationships with technology before they fully understand what's on the other side of the conversation.