Vitality has promised to provide ‘more clarity' around an app after Big Brother Watch voiced concerns over data sharing.
The Moves app is owned by Facebook, Vitality promoted it to users who wanted to claim rewards such as cinema tickets for exercise.
Nick Read, commercial director, Vitality said:"Going forward, we will ensure even more clarity is provided around Moves being owned by Facebook and we will make this link even more explicit in our member communication."
The app record walking, cycling and running done by users and the calories burned for each activity, users who are Vitality policyholders can then gain points to spend on rewards.
The privacy group Big Brother Watch warned that the app required large amounts of personal data, which could then be shared with parent company Facebook, the BBC reported.
While the Moves app is free to use, alternative options such as Polar, Garmin and Fitbug all have to purchased, with Vitality offering a discount.
Read said: "We know from our own data and extensive research that physical activity is a catalyst to healthier behaviour in general, and there is substantial evidence that incentives are a way to motivate people into activity.
"As our advisers know, our members give their consent to their chosen technology provider to pass on their activity data to unlock rewards.
"Our model helps members understand how they can improve their own personal health, make it cheaper and easier to get healthy and, offers rewards to keep members motivated as they take steps to get healthier, through a range of discounts and incentives.
"To achieve this, we work with a range of partners to reward members for healthy behaviour. The member then has a direct relationship with the partner or app, and it is at their discretion whether they choose to share their data.
He added: "As with all of our product and service providers, we continually look at the market to ensure we are providing the best service to our members."
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