BetterHelp

Last updated
BetterHelp
Company type Subsidiary
Industry Psychotherapy
Founded2013;12 years ago (2013)
Founders
  • Alon Matas
  • Danny Bragonier
Headquarters Mountain View, California, U.S.
Area served
Worldwide
ServicesOnline therapy
Unlimited messaging therapy
Parent Teladoc Health (2015–present)
Website www.betterhelp.com

BetterHelp is a mental health platform that provides direct online counseling and therapy services via web or phone text communication. [1] BetterHelp was founded in 2013 by Alon Matas and Danny Bragonier, and acquired by Teladoc in 2015, maintaining its service and brand name post-acquisition. BetterHelp attracted controversy for allegedly sharing its customers' personal data with third parties. [2]

Contents

Background

BetterHelp was founded by Alon Matas in 2013. [3] Matas partnered with co-founder Danny Bragonier to develop BetterHelp's web-based counseling portal and therapist directory.[ citation needed ]

In 2015, BetterHelp was acquired by Teladoc, a telehealth company that has been a telemedicine service provider since 2002. Teladoc acquired BetterHelp for $3.5 million in cash and a $1 million promissory note, with an agreement to make annual payments to the sellers equal to 15% of the total net revenue generated by the BetterHelp business for each of the next three years. [4]

Services

BetterHelp’s counseling staff consists of accredited psychologists, social workers, marriage and family therapists and board-licensed professional counselors, each having a master’s degree or doctorate with at least three years and 1,000 hours of experience. Providers are evaluated by BetterHelp in a process that includes verifying licensure and requiring a case study exam, which is reviewed by a licensed clinician. The company also offers couples and teen counseling. [5]

After subscribing, BetterHelp assigns users a “room” where they can send private messages, live chat, and schedule video or phone sessions with a counselor. [5] The "room" is open 24/7 and can be accessed from any Internet-connected device. [6] BetterHelp offers four live therapy sessions monthly. [7]

History

The company's revenue had reached a projected $60 million by 2018. [8] From 2020 through 2023, BetterHelp was the top purchaser of ads on podcasts, and spent nearly 8 million dollars on podcast ads in December, 2023. [9] BetterHelp has sponsored many YouTubers, leading the website Polygon to label it "one of YouTube’s most prominent sponsors". [10]

In November 2023, Alon Matas announced that he was leaving the company after 10 years. [11]

During the Israel–Hamas war, BetterHelp offered six months of therapy "at no cost for those affected by the war in Israel". This was first made known via an announcement on the Israeli government's official Twitter account. A spokesperson for BetterHelp's parent company told Snopes that this was "an independent initiative" and that Israel's government was not involved. [12]

FTC settlement regarding customer data

BetterHelp has received backlash for allegedly sharing its customers' personal data with Facebook. In its 2022 privacy policy update, BetterHelp stated: "We may share your information in connection with an asset sale, merger, bankruptcy, or other business transaction." [13] The company has responded to these complaints by saying that the law requires BetterHelp to hold on to health data. [14]

On March 2, 2023, the FTC issued a proposed order banning BetterHelp from sharing consumers' health data with third parties. The order also requires BetterHelp to pay $7.8 million to consumers to settle allegations of revealing consumers' sensitive data with Facebook, Snapchat, and others. [15] The FTC complaint tied to the proposed order alleges that BetterHelp collected health status and histories, IP addresses, and email addresses from consumers while making repeated promises to keep this information private. The complaint summarizes that "From 2013 to December 2020, however, [BetterHelp] continually broke these privacy promises, monetizing consumers’ health information to target them and others with advertisements for the Service." [16] BetterHelp agreed to settle the FTC’s allegations, and as of May 2024, have begun issuing refunds to affected customers. The company maintains that this settlement is not an admission of wrongdoing. [17]

Reception

In October 2018, BetterHelp gained attention from media personalities and YouTubers (such as PewDiePie and Boogie2988) after concerns were raised about the alleged use of unfair pricing, poor experiences, paid reviews from actors, and terms of service that allegedly did not correspond with ads promoted by professional YouTubers. [18] Co-founder and then-CEO Alon Matas issued a statement responding to the allegations. [19]

As of 2022, BetterHelp had a 4.04 out of 5 stars rating from the Better Business Bureau, along with an accredited A-rating, while on Trustpilot, the company had a 4.7 out of 5 stars rating based on more than 5,000 customer reviews. [20]

See also

Related Research Articles

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<span class="mw-page-title-main">Gramm–Leach–Bliley Act</span> Act of the 106th United States Congress (1999–2001)

The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies, and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton.

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References

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  3. Cohen, Sagi (24 July 2020). "Locked Down and Uptight? Israeli-founded Online Service Might Be the Solution". Haaretz . Archived from the original on 2022-07-22. Retrieved 2022-07-22.
  4. Dolan, Brian Teladoc IPO filing reveals 299,000 visits last year, details of past acquisitions Archived 2016-08-23 at the Wayback Machine Mobile Health News. Retrieved 1 June 2015.
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  11. "Decided to leave BetterHelp after 10 years | Alon Matas posted on the topic | LinkedIn". www.linkedin.com. Retrieved 2024-10-08.
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  16. "FTC In the Matter of BETTERHELP, INC. 2023169" (PDF). March 2, 2023. Archived (PDF) from the original on September 23, 2023. Retrieved March 4, 2023.
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