The Federal Trade Commission (FTC) has proposed a settlement with online therapy company BetterHelp, requiring the company to pay $7.8 million to consumers who had their health data compromised between 2017 and 2020.
Background on the Settlement
According to the FTC, BetterHelp assured customers that it would not share their health data except for the purpose of providing counseling services. However, the FTC alleged that BetterHelp shared customer emails, IP addresses, and health questionnaire responses with advertisers such as Facebook, Snapchat, and Pinterest.
Industry-Standard Practice or Data Mishandling?
In a statement, BetterHelp claimed that it used limited, encrypted information to optimize advertising campaigns, delivering more relevant ads to users who may be interested in their services. The company argued that this is an "industry-standard practice" routinely used by large health providers and healthcare brands.
However, the FTC disagreed with this characterization, stating that BetterHelp betrayed consumers’ trust by sharing their personal health information for profit. Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said: "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."
Consequences for BetterHelp
The proposed order requires BetterHelp to:
- Limit how long it can retain customer data
- Ask third parties to delete consumer health data shared by BetterHelp
- Obtain express consent before disclosing customer health information to third parties
- Develop a more comprehensive privacy program
BetterHelp has stated that the settlement does not imply any wrongdoing on their part and allows them to continue focusing on their mission of providing access to quality therapy for millions of people worldwide.
Impact on Consumers
Customers who used BetterHelp between August 1, 2017, and December 31, 2020, when these advertising practices were in effect, will be eligible for partial refunds. This settlement marks the first proposed FTC order that would compensate consumers whose health data was compromised.
The Rise of ‘Self-Therapy’ Startups
The mental health space has seen a surge in startups offering online therapy services, often with a focus on self-therapy and moderate mental health support. These companies have raised significant funding and gained popularity among users seeking affordable and accessible mental health support.
However, this settlement raises questions about the data handling practices of these companies and their potential impact on consumer privacy.
Conclusion
The FTC’s proposed order requires BetterHelp to take steps to protect consumer data and obtain express consent before sharing it with third parties. While BetterHelp disputes the characterization of its actions as "data mishandling," the settlement serves as a reminder of the importance of protecting sensitive information in the online therapy space.
As the demand for mental health services continues to grow, it is essential that companies prioritize transparency and accountability in their data handling practices.
Related Topics
- FTC Orders Online Therapy Company BetterHelp to Pay $7.8 Million to Consumers
- BetterHelp Agrees to Pay $7.8 Million in FTC Settlement Over Data Mishandling
About the Author
Amanda Silberling is a senior writer at TechCrunch, covering the intersection of technology and culture. She has also written for publications such as Polygon, MTV, the Kenyon Review, NPR, and Business Insider.
FTC Orders Online Therapy Company BetterHelp to Pay $7.8 Million to Consumers
The Federal Trade Commission (FTC) has proposed a settlement with online therapy company BetterHelp, requiring the company to pay $7.8 million to consumers who had their health data compromised between 2017 and 2020.
The FTC’s Allegations
According to the FTC, BetterHelp assured customers that it would not share their health data except for the purpose of providing counseling services. However, the FTC alleged that BetterHelp shared customer emails, IP addresses, and health questionnaire responses with advertisers such as Facebook, Snapchat, and Pinterest.
Industry-Standard Practice or Data Mishandling?
In a statement, BetterHelp claimed that it used limited, encrypted information to optimize advertising campaigns, delivering more relevant ads to users who may be interested in their services. The company argued that this is an "industry-standard practice" routinely used by large health providers and healthcare brands.
Consequences for BetterHelp
The proposed order requires BetterHelp to:
- Limit how long it can retain customer data
- Ask third parties to delete consumer health data shared by BetterHelp
- Obtain express consent before disclosing customer health information to third parties
- Develop a more comprehensive privacy program
The Impact of the Settlement on Consumers
Customers who used BetterHelp between August 1, 2017, and December 31, 2020, when these advertising practices were in effect, will be eligible for partial refunds. This settlement marks the first proposed FTC order that would compensate consumers whose health data was compromised.
The Rise of ‘Self-Therapy’ Startups
The mental health space has seen a surge in startups offering online therapy services, often with a focus on self-therapy and moderate mental health support. These companies have raised significant funding and gained popularity among users seeking affordable and accessible mental health support.
Conclusion
The FTC’s proposed order requires BetterHelp to take steps to protect consumer data and obtain express consent before sharing it with third parties. While BetterHelp disputes the characterization of its actions as "data mishandling," the settlement serves as a reminder of the importance of protecting sensitive information in the online therapy space.
