Court Rules
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SettlementHigh Risk

FTC Settles with BetterHelp for $7.8M Over Unauthorized Health Data Advertising

BetterHelpJuly 1, 2023Federal Trade Commission

Penalty Amount

$7,800,000

Consumers Affected

800,000

Summary

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.

Remedy

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.

Monetary PenaltyBanConsumer RefundsConsent Decree

Contract Impact

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.

Contract Search Terms

health data consentadvertising data sharingthird-party data disclosuredata processing addendumbreach notification clausedata retention scheduleopt-out mechanismsensitive data handlingcustomer agreement privacy termsvendor data sharing agreement

Violation Types

Entity Details

Entity

BetterHelp

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"BetterHelp"
Fine Amount
"$7.8 million"
Violation Types
"used and shared consumers’ health data for advertising"
Health Data
"health data"
Consent Failure
"failed to obtain consumers’ consent"
Data Sharing Unauthorized
"shared this information with Facebook, Snapchat, and others for advertising"

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