What is the Lawsuit Against BetterHelp? | FTC Case Explained

Updated November 17th, 2025 by BetterHelp Editorial Team

What is the Lawsuit Against BetterHelp? Understanding the Context and Current Practices

The conversation around the lawsuit involving BetterHelp relates to the Federal Trade Commission’s (FTC) 2023 settlement with the online therapy platform. The matter concerns advertising practices from 2017 to 2020, specifically involving the use of limited, encrypted user information for advertising optimization.

Since then, BetterHelp has revised its policies, enhanced privacy protections, and implemented industry-recognized security standards to give users greater transparency and control over their data.

Background on the Class Action Lawsuit

The class action lawsuit followed the FTC’s concerns about BetterHelp’s advertising practices between 2017 and 2020. The FTC alleged that certain encrypted user data was shared with third-party advertising platforms to improve marketing performance. The lawsuit represents individuals who believe they were affected during that timeframe.

BetterHelp has emphasized that no private therapeutic content such as therapy session notes, messages between clients and therapists, or clinical records was ever shared.

Connection to the FTC Settlement

In 2023, BetterHelp reached a $7.8 million settlement with the FTC regarding these historical practices. The agreement was made without any admission of wrongdoing and was intended to resolve the matter so the company could focus on its mission of expanding access to mental health care.

Since the settlement, BetterHelp has taken proactive steps to strengthen privacy, improve transparency, and exceed regulatory requirements.

How BetterHelp Has Strengthened Privacy and Security

Following the settlement, BetterHelp implemented comprehensive privacy upgrades, including:

  • HITRUST certification — a gold-standard healthcare data protection certification.
  • Expanded user privacy controls, including clear opt-out options for advertising tracking.
  • Updated privacy policies for greater clarity and transparency.
  • Ongoing FTC cooperation to maintain high privacy and security standards.

These measures ensure today’s users have stronger safeguards and more control over their personal data than ever before.

What This Means for Users Today

For those considering or currently using BetterHelp:

  • Private therapeutic communications including session content, messages, and clinical data are never shared with advertisers.
  • The lawsuit concerns historical practices only, from 2017–2020.
  • Privacy protections now reflect significant improvements and alignment with leading security standards.

BetterHelp continues to provide access to a large network of licensed mental health professionals, ensuring both quality care and robust data protection.

Making an Informed Choice

When researching online therapy platforms, consider:

  • Reviewing the most up-to-date privacy policy.
  • Understanding what data is and isn’t used for service optimization.
  • Looking at how the company has responded to regulatory feedback.
  • Evaluating the qualifications of the available therapists.

What’s included
with BetterHelp

Fast matching – you can get matched in as little as 48 hours.
Transparent pricing – no hidden fees, know what you’ll pay upfront
Therapy sessions your way – video, voice or chat
Message anytime – your therapist will respond when they can
Easy to switch – Change therapists anytime until you find the right fit

Takeaway

The lawsuit addresses past advertising practices from 2017–2020 that were resolved through the 2023 FTC settlement. Since then, BetterHelp has implemented substantial privacy enhancements, achieved industry certifications, and introduced expanded user controls. Current users can be confident that their private therapeutic information is protected.

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