ℹ️ Medical & Pharmaceutical Updated July 2026

BetterHelp Lawsuits: Online Therapy Data Sharing and Privacy Claims

Enforcement action concerned an online therapy service sharing information collected during mental health intake with advertising platforms.

Category

Medical & Pharmaceutical

Coverage

2025-2026

Last Updated

July 2026

Content Type

Legal Analysis

What the Case Concerned

BetterHelp connects users with licensed therapists online. Regulatory action concerned the handling of information collected when people signed up, including intake questionnaire responses about mental health.

The allegation was that this information was shared with advertising platforms for targeting purposes, despite representations that it would be used to provide the service, and that consumers would not reasonably have expected mental health intake data to be used that way.

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Health apps are often outside HIPAA

Many wellness and therapy apps are not covered entities under HIPAA, so its protections may not apply to data they collect directly. The applicable rules are frequently general consumer protection law and the app own privacy policy, which is weaker protection than most users assume.

Federal authority over unfair or deceptive practices applies where representations about data use differ from actual practice. Health breach notification rules can also apply to health apps not covered by HIPAA.

Relief in matters of this kind has combined refunds to affected consumers with prohibitions on further disclosure of health information for advertising and requirements to obtain express consent for specified uses.

What Users Should Do

Review the privacy policy of any health or wellness app before providing sensitive information, focusing specifically on what is shared with third parties for advertising rather than on general assurances about security.

Check advertising and data sharing settings within the app, and limit ad tracking at the operating system level, which constrains what can be matched across services regardless of individual app settings.

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Refunds are distributed from records

Where refunds are ordered in these matters, eligible consumers are generally identified from company records and paid by an administrator without needing to apply. Any request for a fee or account credentials to release such a payment is a scam.

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BetterHelp Lawsuits: Online Therapy Data Sharing and Privacy Claims: Frequently Asked Questions

Answers to the most common questions about this case and your legal options.

What did the BetterHelp case concern?

Sharing information collected at sign-up, including mental health intake responses, with advertising platforms despite representations it would be used to provide the service.

Does HIPAA protect therapy apps?

Often not. Many wellness and therapy apps are not covered entities, so general consumer protection law and the app privacy policy apply instead.

What relief was provided?

Refunds to affected consumers alongside prohibitions on further disclosure of health information for advertising and requirements for express consent.

Do I need to claim a refund?

Generally no. Eligible consumers are identified from company records and paid by an administrator. Requests for fees or credentials to release payment are scams.

How can I protect my data?

Read what an app shares with third parties for advertising, check in-app data sharing settings, and limit ad tracking at the operating system level.

LawsuitWatch Legal Research Team

Medical & Pharmaceutical Litigation Desk

The LawsuitWatch Legal Research Team monitors federal court PACER filings, MDL docket activity, regulatory enforcement actions, and legal settlements to deliver accurate, timely coverage of litigation affecting American consumers. Content is reviewed for factual accuracy before publication and updated as cases develop. Last reviewed: July 2026.