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]
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 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.[4]
Services
BetterHelp offers four live therapy sessions monthly.[5] The "room" is open 24/7 and can be accessed from any Internet-connected device.[6]
History
The company's revenue had reached a projected $60 million by 2018.[7] 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.[8] BetterHelp has sponsored many YouTubers, leading the website Polygon to label it "one of YouTube’s most prominent sponsors".[9]
In November 2023, Alon Matas announced that he was leaving the company after 10 years.[10]
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.[11]
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."[12] The company has responded to these complaints by saying that the law requires BetterHelp to hold on to health data.[13]
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.[14] 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."[15] 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.[16]
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.[17] Co-founder (and CEO at the time) Alon Matas issued a statement responding to the allegations.[18]YouTube content creators such as PewDiePie and Boogie2988 have spoken out on this issue.[17]
See also
Talkspace – Virtual counseling and therapy service company
Thriveworks – Virtual therapy and counseling company
Telepsychiatry – Mental-health care by telecommunication
