BetterHelp

Last updated
BetterHelp
Company type Subsidiary
Industry Psychotherapy
Founded2013;11 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

History

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 ] Revenue had reached a projected $60 million by 2018. [4]

In 2015, BetterHelp was acquired by Teladoc, a telehealth company that provides remote therapy by telephone and videoconferences. Teladoc acquired BetterHelp for $3.5 million in cash and a $1.0 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. [5]

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. [6] BetterHelp has sponsored many YouTubers, leading the website Polygon to label it "one of YouTube’s most prominent sponsors". [7]

In November 2023, Alon Matas announced that he was leaving the company after 10 years. [8]

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. [9]

Services

BetterHelp offers four live therapy sessions monthly. [10] The "room" is open 24/7 and can be accessed from any Internet-connected device. [11]

Criticism

In October 2018, BetterHelp gained attention from media personalities 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. [12] Co-founder (and CEO at the time) Alon Matas issued a statement responding to the allegations. [13] YouTube content creators such as PewDiePie and Boogie2988 have spoken out on this issue. [12]

Alleged misuse of customer data and FTC settlement

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." [14] The company has responded to these complaints by saying that the law requires BetterHelp to hold on to health data. [15]

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. [16] 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." [17] 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. [18]

See also

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References

  1. ↑ Furhlinger, Josh. All-You-Can-Text Therapy Services Archived 2018-04-04 at the Wayback Machine The Wall Street Journal. Retrieved 30 March 2016
  2. ↑ "FTC says online counseling service BetterHelp pushed people into handing over health information – and broke its privacy promises". Federal Trade Commission. 2023-03-01. Retrieved 2024-05-25.
  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. ↑ "Vulnerable Patients Exposed To 'Growth At Any Cost' Culture". Seeking Alpha. 1 November 2018. Retrieved 8 November 2018.
  5. ↑ 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.
  6. ↑ "Amazon Rides Year-End Retail Wave To Overtake BetterHelp As Top Podcast Ad Spender". Insideradio.com. January 25, 2024. Archived from the original on October 2, 2024. Retrieved January 25, 2024.
  7. ↑ Alexander, Julia (2018-10-04). "YouTube's BetterHelp mental health controversy, explained". Polygon. Archived from the original on 2020-02-07. Retrieved 2024-07-26.
  8. ↑ "Decided to leave BetterHelp after 10 years | Alon Matas posted on the topic | LinkedIn". www.linkedin.com. Retrieved 2024-10-08.
  9. ↑ Ibrahim, Nur (2023-10-16). "Israel Offered 'Free Therapy' with BetterHelp Co. for Those 'Affected by the War'?". Snopes . Archived from the original on 2023-12-07. Retrieved 2023-12-07.
  10. ↑ "Best Online Therapy Services Reviewed". HelpGuide . Archived from the original on 2024-01-04. Retrieved 2024-02-05.
  11. ↑ Martinez, Nikki Psy.D., LCP. Coping With a Cancer Diagnosis. Tips for the Patient, and Those Who Love Them Archived 2016-09-14 at the Wayback Machine The Huffington Post Retrieved 12 October 2015
  12. 1 2 YouTube’s BetterHelp mental health controversy, explained Archived 2020-02-07 at the Wayback Machine , Polygon
  13. ↑ Alon Matas When BetterHelp found itself in a Youtube Controversy Archived 2018-10-17 at the Wayback Machine (October 9, 2018).
  14. ↑ Nicole Wetsman (May 4, 2022). "Mental health app privacy language opens up holes for user data". The Verge. Archived from the original on October 20, 2023. Retrieved May 12, 2022.
  15. ↑ Thomas Germain (March 2, 2021). "Mental Health Apps Aren't All As Private As You May Think". Consumer Report. Archived from the original on March 15, 2023. Retrieved May 12, 2022.
  16. ↑ "FTC to Ban BetterHelp from Revealing Consumers' Data, Including Sensitive Mental Health Information, to Facebook and Others for Targeted Advertising". Federal Trade Commission. March 2, 2023. Archived from the original on October 25, 2023. Retrieved March 4, 2023.
  17. ↑ "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.
  18. ↑ "BetterHelp customers begin receiving refund notices from $7.8M data privacy settlement, FTC says". AP News. 2024-05-08. Archived from the original on 2024-05-22. Retrieved 2024-05-22.
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