Online counseling service BetterHelp will be banned from sharing consumer health data for advertising purposes and fined $7.8 million under a proposed Federal Trade Commission order.
The Federal Trade Commission headquarters in Washington, DC, US, on Friday, Feb. 17, 2023. Photographer: Ting Shen/Bloomberg via Getty Images
Online counseling service BetterHelp will be banned from sharing consumer health data for advertising purposes and fined $7.8 million under a proposed Federal Trade Commission order issued Thursday.The FTC issued the proposed order after alleging BetterHelp revealed sensitive consumer data to third parties like Facebook and Snapchat, after pledging to keep such information private.
The $7.8 million will go to impacted consumers. It's the first time the FTC is doling out money in a case where health data was involved, the agency said.
"The FTC alleged we used limited, encrypted information to optimize the effectiveness of our advertising campaigns so we could deliver more relevant ads and reach people who may be interested in our services," BetterHelp wrote in a blog post. "This industry-standard practice is routinely used by some of the largest health providers, health systems, and healthcare brands. Nonetheless, we understand the FTC's desire to set new precedents around consumer marketing, and we are happy to settle this matter with the agency."
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