Penalty Amount
$7,800,000
Consumers Affected
800,000
BetterHelp agreed to pay $7.8 million to settle FTC allegations that it used and shared consumers' health data for advertising without consent. The online therapy provider is banned from such practices and must provide refunds to approximately 800,000 affected consumers.
BetterHelp must pay $7.8 million in consumer refunds, is permanently banned from using or sharing consumers' health data for advertising, and is subject to a consent decree with the FTC.
In-house legal teams should review vendor agreements with advertising and analytics partners (e.g., Facebook, Snapchat) to ensure data sharing is strictly limited to service provision and includes explicit, separate consent for advertising use. Customer-facing terms of service and privacy policies must be examined for clauses governing the use and disclosure of sensitive health information, particularly for marketing. Data processing agreements (DPAs) with third parties should be audited to confirm they prohibit repurposing of health data. Required changes include implementing granular consent mechanisms for any secondary use of health data, adding clear opt-out options for advertising, and tightening data retention and deletion protocols to align with promised limitations.
Entity
BetterHelp
Industry
HealthcareOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2024/05/betterhelp-customers-will-begin-receiving-notices-about-refunds-related-2023-privacy-settlement-ftc
ftc ban betterhelp revealing consumers data including sensit
https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-ban-betterhelp-revealing-consumers-data-including-sensitive-mental-health-information-facebook
ftc gives final approval order banning betterhelp sharing se
https://www.ftc.gov/news-events/news/press-releases/2023/07/ftc-gives-final-approval-order-banning-betterhelp-sharing-sensitive-health-data-advertising
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"BetterHelp"
"$7.8 million"
"used and shared consumers’ health data for advertising"
"health data"
"failed to obtain consumers’ consent"
"shared this information with Facebook, Snapchat, and others for advertising"
$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.