FTC Proposes $7.8M Settlement With BetterHelp Over Improper Health Data Sharing

The Federal Trade Commission (FTC) proposed a $7.8 million settlement with online counseling service BetterHelp, resolving allegations of improper health data sharing practices. In addition, the FTC proposed an order banning the company from sharing consumer health data for advertising purposes in the future.

Despite BetterHelp’s promise to consumers that it would not improperly disclose health data, the company allegedly shared consumer email addresses, health questionnaire responses, and IP addresses with Facebook, Criteo, Snapchat, and Pinterest, the FTC alleged.

“For example, the company used consumers’ email addresses and the fact that they had previously been in therapy to instruct Facebook to identify similar consumers and target them with advertisements for BetterHelp’s counseling service, which helped the company bring in tens of thousands of new paying users and millions of dollars in revenue,” the FTC stated.

The FTC complaint alleged that BetterHelp failed to maintain policies and procedures to protect health data and did not obtain consent from consumers before sharing their information. BetterHelp also failed to limit how third parties could use their consumers’ health information, and denied 2020 news reports that it had shared information with third parties.

"When a person struggling with mental health issues reaches out for help, they do so in a moment of vulnerability and with an expectation that professional counseling services will protect their privacy,” said Samuel Levine, director of the FTC's Bureau of Consumer Protection.

"Instead, BetterHelp betrayed consumers’ most personal health information for profit. Let this proposed order be a stout reminder that the FTC will prioritize defending Americans’ sensitive data from illegal exploitation."

The settlement fund will be used to provide partial refunds to BetterHelp customers who used the service between August 1, 2017, and December 31, 2020. The settlement marks the first time that the FTC moved to return funds to consumers whose health data was improperly disclosed.

The proposed order also directs BetterHelp to obtain affirmative consent before disclosing health information to third parties and requires it to implement a comprehensive privacy program that better protects consumer data. BetterHelp will also be required to direct third parties to delete any consumer health data that the company revealed to them in the past.

BetterHelp responded to the settlement and expressed its commitment to privacy.

“BetterHelp and the FTC have reached a settlement in regard to BetterHelp's advertising practices that were in effect between 2017 to 2020. The FTC alleged we used limited, encrypted information to optimize the effectiveness of our advertising campaigns so we could deliver more relevant ads and reach people who may be interested in our services. This industry-standard practice is routinely used by some of the largest health providers, health systems, and healthcare brands,” BetterHelp stated.

“Nonetheless, we understand the FTC's desire to set new precedents around consumer marketing, and we are happy to settle this matter with the agency. This settlement, which is no admission of wrongdoing, allows us to continue to focus on our mission to help millions of people around the world get access to quality therapy.”

BetterHelp said that it recently obtained HITRUST certification and will cooperate with the FTC to further safeguard its consumers’ data.