The FTC described the payment as a “partial refund” to users who signed up and paid for BetterHelp’s services between August 1, 2017, and December 31, 2020. BetterHelp provides online medical health services. The platform benefited greatly from an aggressive influencer marketing program on social media, particularly YouTube, Facebook, and Instagram. A 2022 Mozilla report found the BetterHelp app had some of the weakest privacy safeguards in the mental health/prayer category.
BetterHelp’s Data-Sharing Practices
At the heart of the FTC’s order is BetterHelp’s data-sharing practices with third parties. When signing up for the service, users fill out a questionnaire that asks for sensitive mental health data. This includes questions about previous medical history, whether they have experienced depression or suicidal thoughts, and if they take any medication. BetterHelp also collects other personal information, such as names, email addresses, and dates of birth. The platform repeatedly states that it does not share users’ personal information except for limited exceptions, such as sharing with a therapist. However, the FTC found that BetterHelp shares users’ email addresses, IP addresses, and health questionnaires with third parties for advertisement purposes. “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 in a press release. In light of this, the FTC has issued a proposed order to ban BetterHelp from sharing users’ health information for advertising purposes. Meanwhile, in response to the FTC’s fine and proposed ban on data sharing with advertisers, BetterHelp said this is an “industry-standard practice.” “This industry-standard practice is routinely used by some of the largest health providers, health systems, and healthcare brands,” BetterHelp said in a blog post. The company has denied sharing some data, like users’ names and data from therapy sessions, with advertisers and other third parties.
BetterHelp Directed to Amend its Privacy Practices
Apart from the data sharing ban and $7.8 million reparation order, the FTC has directed BetterHelp to make amendments to its privacy practices. BetterHelp must now obtain “affirmative express consent” from users before sharing their personal data with a third party. The FTC has instructed the platform to set up a comprehensive privacy program that includes strong safeguards. BetterHelp must also direct third-party companies and services to delete any previously shared consumer health data. Additionally, the FTC has charged the platform to set up a data retention schedule that will indicate a clear limit on how long BetterHelp can retain personal and health data. “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,” Levine added. As mental health and wellness applications continue to grow in popularity, it is crucial that these platforms protect users’ privacy. This issue is not limited to health apps, as popular apps across various categories, including dating, messaging, news, and female sexual wellness, are also known to have questionable privacy practices.
