Penalty Amount
$7,800,000
The FTC proposed a consent order against BetterHelp for sharing consumers' sensitive mental health data with third parties like Facebook for targeted advertising without proper consent. BetterHelp must pay $7.8 million in refunds and is banned from such data sharing, with requirements for consent and privacy programs.
BetterHelp is required to pay $7.8 million for consumer refunds, banned from sharing health data for advertising, must obtain affirmative consent before disclosing data, implement a comprehensive privacy program, direct third parties to delete shared data, and limit data retention.
In-house legal teams should review vendor agreements (especially with advertising platforms like Facebook/Snapchat) and customer-facing agreements (Terms of Service, Privacy Policies) for clauses governing data sharing, consent, and advertising. Specifically scrutinize: (1) data sharing/license clauses permitting disclosure of 'sensitive personal data' or 'health information' to third parties for targeted advertising or retargeting; (2) consent mechanisms—ensure they are explicit, informed, and separate for sensitive health data sharing; (3) data retention and deletion provisions; (4) breach notification obligations. Changes likely needed: prohibit sharing of consumer health data for advertising without unambiguous opt-in consent; restrict retargeting based on website/app visits even for non-registered users; implement documented privacy programs with regular assessments; and add audit rights for data processing activities.
Entity
BetterHelp, Inc.
Also known as: BetterHelp
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-ban-betterhelp-revealing-consumers-data-including-sensitive-mental-health-information-facebook
2023169 betterhelp complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/2023169-betterhelp-complaint_.pdf
202 3169 betterhelp consent
https://www.ftc.gov/system/files/ftc_gov/pdf/202_3169-betterhelp-consent.pdf
betterhelp inc analysis of proposed consent order to aid pub
https://www.federalregister.gov/documents/2023/03/14/2023-05139/betterhelp-inc-analysis-of-proposed-consent-order-to-aid-public-comment
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"BetterHelp, Inc."
"$7.8 million"
"revealed consumers’ sensitive data with third parties such as Facebook and Snapchat for advertising after promising to keep such data private."
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.