Penalty Amount
$7,800,000
Consumers Affected
800,000
BetterHelp agreed to pay $7.8 million to settle FTC allegations that it used and shared consumers' health data for advertising without consent. The online therapy provider is banned from such practices and must provide refunds to approximately 800,000 affected consumers.
BetterHelp must pay $7.8 million in consumer refunds, is permanently banned from using or sharing consumers' health data for advertising, and is subject to a consent decree with the FTC.
In-house legal teams should review vendor agreements with advertising and analytics partners (e.g., Facebook, Snapchat) to ensure data sharing is strictly limited to service provision and includes explicit, separate consent for advertising use. Customer-facing terms of service and privacy policies must be examined for clauses governing the use and disclosure of sensitive health information, particularly for marketing. Data processing agreements (DPAs) with third parties should be audited to confirm they prohibit repurposing of health data. Required changes include implementing granular consent mechanisms for any secondary use of health data, adding clear opt-out options for advertising, and tightening data retention and deletion protocols to align with promised limitations.
Entity
BetterHelp
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/05/betterhelp-customers-will-begin-receiving-notices-about-refunds-related-2023-privacy-settlement-ftc
ftc ban betterhelp revealing consumers data including sensit
https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-ban-betterhelp-revealing-consumers-data-including-sensitive-mental-health-information-facebook
ftc gives final approval order banning betterhelp sharing se
https://www.ftc.gov/news-events/news/press-releases/2023/07/ftc-gives-final-approval-order-banning-betterhelp-sharing-sensitive-health-data-advertising
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"BetterHelp"
"$7.8 million"
"used and shared consumers’ health data for advertising"
"health data"
"failed to obtain consumers’ consent"
"shared this information with Facebook, Snapchat, and others for advertising"
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