Recently, many existing and former clients of BetterHelp have started receiving notification letters regarding refund eligibility, stemming from a $7.8 million settlement agreement reached with the online therapy service last year due to accusations that it unlawfully disclosed sensitive health data to advertisers like Facebook and Snapchat. In March 2023, the US Federal Trade Commission (FTC) charged California-based BetterHelp with disclosing confidential client information, including details pertaining to mental health issues, to third parties for commercial marketing purposes. Additionally, email addresses and IP addresses were also transferred in this manner according to the FTC.
BetterHelp agreed to resolve these charges with the FTC last year without admitting guilt, asserting that the actions they were reprimanded for are customary within the industry. Nevertheless, Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, countered this claim, stating that “when someone suffering from mental health concerns seeks assistance, they do so in a vulnerable state, expecting that professional counseling services will safeguard their privacy.” Over 800,000 individuals received notifications on May 8th, informing them of their entitlement to refunds dating back between August 2017 and December 2020. The specific value of each refund has yet to be disclosed.
Those eligible for repayment will receive communication from Ankura Consulting Group, an independent redress administrator. Should no action be taken, the default remuneration will be delivered via PayPal to the email address provided during sign-up; however, clients may choose alternate payment methods, such as Zelle or a paper check, until June 10th. It is crucial to mention that BetterHelp has previously stated that the settlement does not constitute an acknowledgement of wrongdoing, and that the activities they were penalized for are commonplace in the sector.
Leave a Reply