BetterHelp has settled with the U.S. Federal Trade Commission (FTC) for $7.8 million. The settlement addresses claims that the service improperly shared user health data with advertising platforms.
The platform, founded in 2012, is an alternative to in-person therapy sessions and helps people manage mental health issues like depression and anxiety by connecting them to licensed therapists through digital mediums.
The Background of the Case
A probe by the FTC uncovered that the company improperly handled sensitive user data. The investigation revealed that the service had been collecting personal information from both users and website visitors without proper consent, including those who had not registered for any sessions.
The inquiry highlighted that the company shared personal data such as email addresses, IP addresses, and responses to initial health assessments with popular platforms like Facebook and Snapchat.
This was done under the guise of using the information for limited purposes such as improving counseling services. Instead, the data was used to tailor ads aimed at attracting new users, significantly boosting the company’s client base and revenue.
The Settlement and its Implications
The therapy service has agreed to the FTC’s terms of paying $7.8 million in refunds to affected consumers. This settlement covers payments for services rendered between August 2017 and December 2020 under the company and its affiliated brands such as MyTherapist and Teen Counseling.
Consumers eligible for the refund will be contacted via email by Ankura Consulting, the firm overseeing the refund process. They will have until June 10, 2024, to select their preferred refund method from options including Zelle, PayPal, and traditional checks.
Final Word
This settlement marks a significant moment for user privacy in the digital health industry. It emphasizes the necessity for businesses to operate with the highest standards of data protection. Users should also remain vigilant and informed about their data rights.
Anas Hasan
May 8, 2024
2 weeks ago
