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."
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
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$106.8M
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The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.