What is the Lawsuit Against BetterHelp? | FTC Case Explained

Updated September 19th, 2025 by BetterHelp Editorial Team

What is the Lawsuit Against BetterHelp? Understanding the Legal Matters

The lawsuit against BetterHelp refers to a class action lawsuit filed in relation to the Federal Trade Commission's 2023 settlement with the online therapy platform. This legal action relates to BetterHelp's advertising practices between 2017 and 2020, specifically regarding how the company used certain user information for advertising optimization.

Understanding the details of this lawsuit, its relationship to the FTC settlement, and BetterHelp's response can provide clarity for current and prospective users of online therapy services.

The Class Action Lawsuit Details

The class action lawsuit against BetterHelp was filed following the Federal Trade Commission's allegations that the company shared limited user information with third-party advertising platforms between 2017 and 2020. The lawsuit includes allegations that BetterHelp misled users about its data sharing practices during this period.

The lawsuit relates to BetterHelp's use of coded user data to optimize advertising campaigns on platforms like Facebook and other social media sites. The legal action represents users who believe they were affected by these practices during the specified timeframe.

Understanding the FTC Settlement Connection

The lawsuit is directly connected to BetterHelp's 2023 settlement with the Federal Trade Commission. In this settlement, BetterHelp agreed to pay $7.8 million to resolve FTC charges related to advertising practices between 2017 and 2020. The FTC alleged concerns about how BetterHelp used certain consumer information for advertising purposes, BetterHelp maintained that its practices were industry-standard among healthcare providers. The settlement included no admission of wrongdoing by BetterHelp.

The Lawsuit and BetterHelp's Response

The class action lawsuit was filed following the Federal Trade Commission's 2023 settlement with BetterHelp. The case relates to the same advertising practices addressed in the FTC settlement from 2017-2020.

BetterHelp maintains that its practices during that period were industry-standard among healthcare providers and involved only limited, coded information for advertising optimization - not personal therapeutic content. The company emphasizes that no personal therapeutic information, including therapy sessions, messages with therapists, or clinical data, was ever shared with third parties.

BetterHelp's Position

BetterHelp has maintained several key positions regarding both the FTC settlement and related lawsuit:

Industry Standard Practices

BetterHelp argues that its advertising optimization practices were standard among healthcare providers and digital health platforms during that period.

No Clinical Data Sharing

BetterHelp emphasizes that personal therapeutic information, including therapy sessions, messages, and clinical data, was never shared with third parties.

Settlement Without Admission

The FTC settlement resolved the matter without admission of wrongdoing, with BetterHelp agreeing to the terms to focus on serving users rather than prolonged legal proceedings.

Current Personal and Security Measures

Following the FTC settlement and in response to ongoing legal matters, we have implemented comprehensive enhancements. We achieved HITRUST certification, recognized as the industry gold standard for information protection and assurance in healthcare. This certification demonstrates our commitment to maintaining the highest level of security controls and consistent oversight.

Additionally, we have enhanced security controls, giving users clearer options to opt out of advertising tracking and better control over their data preferences. We have also revised our policies to provide greater transparency about data handling practices and continue working in cooperation with the FTC to maintain industry-leading protection standards.

What This Means for Current and Potential Users

For individuals considering or currently using BetterHelp services, several important points provide reassurance. Personal therapeutic communications, including therapy sessions, messages with therapists, and clinical data, remain fully protected and are not shared with third parties. The lawsuit addresses historical practices from 2017-2020, while BetterHelp's current personal measures reflect significant improvements and regulatory consent. Throughout these legal matters, BetterHelp continues to maintain its network of over 30,000 licensed mental health professionals, with rigorous vetting and credentialing requirements unchanged.

Legal Process and Resolution

Class action lawsuits involving consumer protection matters can follow various paths through the legal system. As this case involves ongoing legal proceedings, the specific timeline and resolution process will depend on factors determined through the legal process.

Making Informed Decisions About Online Therapy

When evaluating online therapy platforms in light of legal matters:

  • Review current exclusive policies and security measures
  • Understand what information is protected vs. what may be used for service optimization
  • Consider platforms' responses to regulatory feedback and legal challenges
  • Focus on current practices rather than past issues
  • Evaluate the therapeutic credentials and quality of mental health professionals

Our extensive network of licensed therapists and improved measures demonstrate our commitment to providing quality mental health support while addressing legal and regulatory concerns.

Takeaway

The lawsuit relates to BetterHelp's 2023 FTC settlement regarding advertising practices from 2017-2020. The legal matter addresses past data sharing practices, and BetterHelp has implemented significant improvements, including HITRUST certification and enhanced user controls. Exclusive therapeutic information remains protected, and the platform continues to provide access to licensed mental health professionals for millions of users worldwide.

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