Teladoc’s BetterHelp to pay $7.8M in settlement with FTC

The Federal Trade Commission has issued a proposed order banning online counseling service BetterHelp from sharing consumers’ health data, including sensitive information about mental health challenges, for advertising. The proposed order also requires the company to pay $7.8M to consumers to settle charges that it revealed consumers’ sensitive data with third parties such as Facebook and Snapchat for advertising after promising to keep such data private. In its form 10-K filing, Teladoc Health previously stated: "On July 30, 2020, the company received a Civil Investigative Demand from the Federal Trade Commission as part of its non-public investigation to determine whether the company, through its BetterHelp business, engaged in unfair business practices in violation of the Federal Trade Commission Act. The company subsequently entered into settlement negotiations with the FTC in an effort to resolve all claims and allegations arising out of or relating to the FTC Investigation. During 2022, the company determined that a loss stemming from the FTC Investigation in the amount of $7.8 million is probable. An accrual of such amount is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets and in general and administrative expenses in the company’s consolidated statements of operations and other comprehensive loss." Reference Link