BetterHelp, an online counseling service, has agreed to settle with the Federal Trade Commission (FTC) by returning $7.8 million to its customers who had been promised that their health data, including mental health challenges, would be kept confidential.
However, the company allegedly shared this data with other companies like Facebook and Snapchat. As per the proposed FTC order, the California-based company will have restrictions on sharing consumer data in the future.
First Step from FTC
The settlement with the FTC does not constitute an admission of wrongdoing, according to BetterHelp. The company claims that the behavior for which it was sanctioned is commonplace in the industry.
The FTC order is intended to regulate the sharing of consumer data by the company in the future and to address BetterHelp's alleged failure to provide adequate protection of confidential information.
This is the first step taken by the Commission to reimburse customers whose health information was compromised.
Additionally, the FTC's proposed order will forbid BetterHelp from disclosing customer information to specific third parties for re-targeting, which is the practice of displaying advertisements to customers who have previously visited BetterHelp's website or used its app, even those who have not subscribed to the business' counseling service.
"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, Samuel Levine, Director of the FTC's Bureau of Consumer Protection, said in a press release statement.
Levine claims that the company "betrayed" its users' personal health information for profit.
BetterHelp's Response
BetterHelp provides online counseling services under a variety of names, including BetterHelp Counseling. It also promotes services geared toward particular demographics, such as Faithful Counseling, which focuses on Christians, Teen Counseling, which serves teenagers and requires parental permission, and Pride Counseling, targeted at the LGBTQIA+ community.
Customers who are interested in BetterHelp's services must complete a questionnaire that requests sensitive data about their mental health, such as if they have ever had depression or suicidal thoughts and whether they are currently taking any medications.
They disclose their name, email address, date of birth, and other private data. After that, clients are paired with counselors and pay $60 to $90 per week for counseling.
BetterHelp described the data-sharing procedures as "industry-standard practice" that are regularly employed by some of the biggest healthcare organizations, systems, and brands.
The company said that it recognized the FTC's intention to establish new standards for consumer marketing and that it was prepared to work with the agency to find a solution.
"To clarify, we do not share and have never shared with advertisers, publishers, social media platforms, or any other similar third parties, private information such as members' names or clinical data from therapy sessions. In addition, we do not receive and have never received any payment from any third party for any kind of information about any of our members," BetterHelp wrote on its website.
