The U.S. Federal Trade Commission charged BetterHelp with sharing sensitive health data with advertisers, leading to a $7.8 million settlement in March 2023. The company allegedly disclosed personal mental health information, user emails, and IP addresses to companies like Facebook and Snapchat for advertising purposes. As a result, 800,000 current and former BetterHelp customers are now eligible for refunds, receiving notices this week regarding their payment options.
The settlement payments will be split evenly among recipients, amounting to just under $10 for each individual impacted. Those who signed up for and paid for BetterHelp services between August 2017 and December 2020 are eligible for refunds. The agreement also covers users of platforms like MyTherapist, Faithful Counseling, and Pride Counseling. Consumers who are eligible for refunds should expect to receive emails from Ankura Consulting Group, the independent redress administrator handling the payments.
Recipients of refund eligibility notices have until June 10 to choose their preferred payment method, which includes options like PayPal, Zelle, or a paper check. If no action is taken, the default payment method will be through PayPal to the recipient’s email address. BetterHelp maintains that the settlement does not imply any wrongdoing on their part and reaffirms their commitment to member privacy. The company stated that they have never shared private information like names or therapy session data with advertisers and do not receive payments from third parties for member information.
Customers who believe they are eligible for refunds but did not receive a notice should visit the FTC’s website for more information on how to file a claim. The BetterHelp settlement serves as a cautionary reminder of the importance of data privacy and the potential risks associated with sharing sensitive health information online. This case highlights the need for increased scrutiny and regulation to protect consumer data and ensure transparency from online service providers who handle personal information.
