BetterHelp has reached a $7.8 million settlement with the U.S. Federal Trade Commission (FTC) over allegations of mishandling and sharing consumer health data for advertising purposes. BetterHelp, founded in 2013, offers an alternative to traditional face-to-face therapy by providing a mental health platform where licensed therapists counsel clients through text, live chat, phone, and video communication. The platform caters to individuals dealing with various mental health issues, including depression, anxiety, post-traumatic stress, substance abuse, and addictions.
The FTC’s investigation, which concluded in March 2023, uncovered that BetterHelp collected data from app users and website visitors without proper consent. This data, including email addresses, IP addresses, and responses to preliminary health questionnaires, was shared with third-party companies such as Facebook, Snapchat, Criteo, and Pinterest.
Despite promises to limit the use of personal health information to counseling services, the complaint revealed that BetterHelp used this data to identify and target similar consumers with advertisements for its services, significantly boosting its user base and revenue.
As part of the settlement, BetterHelp agreed to pay $7.8 million in refunds to approximately 800,000 consumers who used their services between August 1, 2017, and December 31, 2020. The refund program also includes users of BetterHelp’s affiliated services such as MyTherapist, Teen Counseling, Faithful Counseling, Pride Counseling, iCounseling, Regain, and Terappeuta.
Eligible consumers will receive email notifications from Ankura Consulting, the firm managing the refund process, and will be given options for receiving their refunds via checks, Zelle, or PayPal. All payments are expected to be distributed this summer, with a deadline of June 10, 2024, for consumers to select their preferred payment method.
This settlement highlights the importance of data privacy and the need for companies to adhere to promises made regarding the use of sensitive consumer information. The FTC’s action against BetterHelp serves as a reminder to other organizations about the legal and financial repercussions of misusing personal data, particularly in sensitive areas such as mental health services.
