FTC to ban BetterHelp from sharing health data for ads

The Federal Trade Commission fined online therapy company BetterHelp $7.8 million for allegedly sharing consumer data with third parties like Facebook and Snapchat for advertising purposes.

The suggested order is The FTC’s second recent data-sharing action by the digital health company will also prevent BetterHelp from disclosing health data for advertising. The agency said this is its first promotion that will refund funds to consumers whose data has been shared.

According to the FTC A mental health company owned by Teladoc Health has disclosed consumer email addresses, IP addresses and information from health questionnaires. As an example, the agency said BetterHelp used email addresses and the fact that users had previously been in therapy so that Facebook could find similar customers and target ads to them.

The FTC also stated that BetterHelp does not maintain policies to protect user data, obtain consumer consent before disclosing it, or place any restrictions on how third parties may use the information. He also noted that in 2020 the company misled users by refuting news reports that the company had shared data with third parties.

In its proposed procedure, BetterHelp will need to obtain express consent before disclosing data to certain third parties for any purpose, implement a privacy program, instruct third parties to delete consumer health data, and limit the amount of time BetterHelp may retain personal health information.

“When a person struggling with mental health issues seeks help, they do so in a moment of vulnerability and in the hope that professional counseling services will protect their privacy,” said Samuel Levin, director of the FTC Consumer Protection Bureau. statement. “Instead, BetterHelp betrayed the most personal health information of consumers for profit. Let this proposed order be a strong reminder that the FTC will prioritize protecting Americans’ sensitive data from misuse.”

IN BetterHelp said in a statement that it reached an agreement with the FTC regarding advertising practices in place between 2017 and 2020, although it did not acknowledge any wrongdoing.

“The FTC claimed that we used limited, encrypted information to optimize the effectiveness of our advertising campaigns so that we could show more relevant ads and reach people who may be interested in our services,” the company said. “This industry standard practice is used regularly by some of the largest healthcare providers, healthcare systems and healthcare brands. However, we understand the FTC’s desire to set new precedents for consumer marketing, and we are pleased to have this matter resolved with the agency. .”

BIG TREND

About a month ago FTC the alleged cost of medicines and the GoodRx telemedicine platform has shared consumers’ personal health information with third parties such as Google and Facebook for advertising purposes.

The agency said GoodRx provided information about prescription drugs and consumers’ health so that they could target health-related ads based on that information. The company agreed to pay a $1.5 million fine to settle the case, but also admitted no wrongdoing.