FTC Demands $7.8M Compensation: BetterHelp Data Breach Impacts Online Therapy Platform

BetterHelp faces a $7.8 million fine from the FTC due to a privacy breach leading to the exposure of sensitive client data to entities like Facebook and Snapchat prompting a data policy overhaul and compensation for eligible users who used its services between August 1, 2017 and December 31, 2020 administered by Ankura Consulting Group with recipients urged to act by June 10 for reimbursement.

BetterHelp Faces $7.8 Million Fine After Privacy BetterHelp Data Breach

Amidst the era of digital healthcare, a significant breach of privacy has occurred leading to a loss of trust in BetterHelp, an online therapy platform. The Federal Trade Commission (FTC) has intervened demanding compensation for affected customers totaling $7.8 million. These actions follow accusations made against BetterHelp in March 2023 alleging the unauthorized release of sensitive client information for advertising purposes which violated privacy norms, according to the report of The US Sun.

The FTC investigation found that BetterHelp exposed user data, including email addresses and health responses, without consent. Entities like Facebook and Snapchat reportedly accessed this data for advertising without proper consent or disclosure, leading to FTC action against BetterHelp for inadequate data handling practices.

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(photo: Sourcepoint)

Eligible Users May Seek Compensation

BetterHelp is mandated by the FTC to enact significant changes in its data management policies, including obtaining clear consent before sharing personal information, establishing a robust privacy program, and enforcing a data retention schedule. Customers who used BetterHelp’s services between August 1, 2017, and December 31, 2020, across various platforms, are eligible for compensation.

Eligible Users Urged to Act by June 10 for Compensation for BetterHelp Data Breach

Ankura Consulting Group is managing the reimbursement process for customers affected by BetterHelp’s data mishandling. Eligible recipients have until June 10 to choose their preferred reimbursement method via email. Those who miss the deadline will be automatically reimbursed through PayPal. Customers should follow the instructions in the email or use the provided link with a unique payment code for quick resolution. The effectiveness of these efforts will reflect BetterHelp’s commitment to addressing past mistakes and rebuilding trust in telehealth.

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