What the FTC Found
The FTC charged that BetterHelp, an online therapy service, shared sensitive user information — email and IP addresses and answers to personal mental-health questionnaires — with advertising platforms including Facebook, Snapchat, Pinterest and Criteo, despite promising to keep that information private. Using a person’s mental-health details for advertising, after a privacy promise, is what the agency targeted.
BetterHelp agreed to settle in 2023 and to stop sharing health data for advertising, and it was barred from disclosing such information going forward.
The $7.8 Million in Refunds
Under the settlement, BetterHelp paid $7.8 million, distributed as refunds to affected users. An independent administrator began sending payments in 2024; eligibility centered on people who signed up for the service in a defined window — reported as August 2017 through December 2020. Because funds remained after the first round, additional payments were sent to those who cashed their first.
Notices came from the official administrator, not from a site asking users to “claim” anything with extra personal details.
What It Means for Users
The case, brought alongside a similar action against GoodRx, marked a turn in how regulators treat digital health data: telehealth and wellness apps handling sensitive information can be held to their privacy promises. For users, the lesson is that intake questionnaires are health data, and where it goes depends on the app’s actual practices.
Before You Act
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BetterHelp Lawsuit: The FTC Data-Sharing Settlement and Refunds: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What did BetterHelp do?
The FTC charged it shared users' email and IP addresses and mental-health questionnaire answers with advertising platforms like Facebook and Snapchat, despite promising privacy.
How much was the BetterHelp settlement?
$7.8 million, paid as refunds to affected users. Payments began in 2024 through an independent administrator, with eligibility centered on signups from August 2017 through December 2020.
How were refunds distributed?
An official redress administrator emailed eligible users about payments. Legitimate notices did not ask for extra sensitive information to 'claim' a refund.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.