Court Rules
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Consent DecreeHigh Risk

FTC Bans BetterHelp from Sharing Mental Health Data, Orders $7.8M Refund

BetterHelp, Inc.March 2, 2023Federal Trade Commission

Penalty Amount

$7,800,000

Summary

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.

Remedy

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.

Monetary PenaltyConsumer RefundsBanCompliance ProgramData DeletionConsent Decree

Contract Impact

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.

Contract Search Terms

data sharing agreementthird-party data sharingtargeted advertising consentsensitive personal datahealth data processingconsumer consent mechanismdata retention schedulebreach notification clauseprivacy program requirementsopt-out mechanism

Violation Types

Entity Details

Entity

BetterHelp, Inc.

Also known as: BetterHelp

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"BetterHelp, Inc."
Fine Amount
"$7.8 million"
Violation Description
"revealed consumers’ sensitive data with third parties such as Facebook and Snapchat for advertising after promising to keep such data private."

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