Class Action Lawyer 
BetterHelp, an online therapy platform, has agreed to pay a $7.8 million settlement to approximately 800,000 victims following an FTC suit concerning the unlawful distribution of consumers’ data. The website, offering psychiatric and psychological consultations along with ongoing talk therapy, reportedly shared client health data for advertising purposes, despite a privacy policy promising data safeguards. This breach compromised the confidentiality of their users and potentially violated HIPAA standards.
Background of the Case
According to the FTC, BetterHelp gathered sensitive mental health information via their onboarding questionnaire, which was then shared with platforms including Facebook, Snapchat, and Pinterest. Lists were compiled of email addresses for those currently receiving therapy through BetterHelp to create targeted audience lists for mental health and therapy-adjacent products and services.
BetterHelp maintains that these allegations are untrue, despite the settling of the lawsuit and has released a public statement specifying that the payout is “not an admission of guilt.”
Regardless, BetterHelp’s settlement comes with requirements to produce and enact a privacy program to protect consumer data moving forward. They are also banned from sharing any personal data at all from consumers for advertising purposes.
Eligibility for Settlement
Settlement payouts will be dispersed to anyone who signed up for BetterHelp between August 2017 and December 2020. Users will be contacted directly for payment through digital platforms like Paypal, Zelle, and Venmo, or they can opt to receive a paper check.
