FTC
privacy
BetterHelp Faces $7.8M Fine for Sharing User Data. Did They Leak Your Mental Hea...
In a move raising concerns about data privacy in the mental health space, online therapy giant BetterHelp has settled charges with the U.S. Federal Trade Commission (FTC) for a hefty $7.8 million. The FTC alleged that BetterHelp engaged in deceptive data practices, compromising the privacy of its users.
#### A Viable Alternative, Now Tarnished
Founded in 2013, BetterHelp emerged as a leading platform offering convenient and accessible mental health services. By providing text, chat, phone, and video therapy sessions with licensed professionals, BetterHelp became a viable alternative to traditional face-to-face therapy, particularly for individuals seeking help with conditions like depression, anxiety, substance abuse, and PTSD.
#### Misuse of Vulnerable Data
However, the FTC investigation revealed a disturbing disregard for user privacy. The complaint alleged that BetterHelp collected a wide range of user data, including email addresses, IP addresses, and even responses from preliminary health questionnaires – information explicitly promised to be kept confidential.
This sensitive data collection extended beyond users who signed up for therapy, encompassing even those simply visiting the BetterHelp website.
#### Fueling Growth Through Broken Promises
More concerning was the revelation that BetterHelp allegedly shared this collected data with third-party advertising platforms like Facebook, Snapchat, Criteo, and Pinterest.
The FTC contends that this data was used to target potential customers with advertisements, essentially leveraging users' vulnerabilities for financial gain. The complaint further alleges that this practice resulted in a significant increase in user acquisition and revenue for BetterHelp.
#### Refunds and Repercussions
As part of the settlement, BetterHelp has agreed to pay $7.8 million in refunds to affected consumers. This applies not only to BetterHelp users but also to users of affiliated platforms like MyTherapist, Teen Counseling, Faithful Counseling, Pride Counseling, iCounseling, Regain, and Terappeuta. The FTC estimates that roughly 800,000 consumers are eligible for refunds, highlighting the scale of the alleged data breach.
A third-party entity, Ankura Consulting, will oversee the distribution of refunds. Eligible users will receive email notifications outlining the process and available payment options, including checks, Zelle, and PayPal. The deadline to choose a preferred payment method is June 10, 2024, with all refunds expected to be distributed this summer.
