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."
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.