FTC to Bar BetterHelp From Sharing Health Data for Ads

The U.S. Federal Trade Commission (FTC) has issued a proposed order banning online counseling service BetterHelp from sharing consumers’ health data, including sensitive information about mental health challenges, for advertising. 

The proposed order also requires the company to pay $7.8 million to consumers to settle charges that it revealed consumers’ sensitive data with third parties such as Facebook and Snapchat for advertising after promising to keep such data private.

This is the first Commission action returning funds to consumers whose health data was compromised. In addition, the FTC’s proposed order will ban BetterHelp from sharing consumers’ personal information with certain third parties for retargeting.

The proposed order also will limit the ways in which BetterHelp can share consumer data going forward.

"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 in a news release. "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 $7.8 million that BetterHelp must pay under the proposed order will be used to provide partial refunds to consumers who signed up for and paid for BetterHelp’s services between August 1, 2017, and December 31, 2020. Additionally, the proposed order also prohibits the company from misrepresenting its sharing practices and requires it to:

• obtain affirmative express consent before disclosing personal information to certain third parties for any purpose;

• put in place a comprehensive privacy program that includes strong safeguards to protect consumer data;

• direct third parties to delete the consumer health and other personal data that BetterHelp revealed to them; and

• limit how long it can retain personal and health information according to a data retention schedule. 

The Commission voted 4-0 to issue the proposed administrative complaint and to accept the consent agreement with the company.

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