As the digital age surges forward, telemedicine services have become increasingly prevalent. One such service, BetterHelp, an online therapy platform, has grown rapidly. However, recently the platform hit a stumbling block as around 800,000 of its customers received refund notices unexpectedly. The refunds are believed to originate from a data privacy lawsuit, which BetterHelp has now settled.
BetterHelp is an online platform connecting individuals with licensed, trained, experienced, and accredited psychologists, marriage and family therapists, clinical social workers, and board-certified professional counselors. The platform allows millions of users to access professional help from the comfort of their own homes, a service that has been particularly crucial given the ongoing global pandemic. However, despite the platform’s numerous benefits, it seems that BetterHelp has been fighting some battles behind the scenes.
According to information retrieved from GodzillaNewz.com, about 800,000 BetterHelp customers have been notified of an alarming refund. The unexpected messages, sent via email, informed customers that they were entitled to a partial refund of their membership fees. These emails stressed some specific points: the refund is not an admission of guilt or unlawful behavior by BetterHelp, and that the refund comes as a result of a legal settlement.
So, what was the lawsuit all about? Delving into the specifics, BetterHelp was accused of sharing user data with third-party advertisers, breaching the trust and privacy of its customers. In early 2020, a class-action lawsuit was filed on behalf of BetterHelp users who alleged that the company violated California’s Confidentiality of Medical Information Act (CMIA) and Unfair Competition Law (UCL). The case claimed that BetterHelp shared identifiable medical information with third-party data analytics providers like Facebook and Google without user consent.
The settlement of the aforementioned lawsuit is the primary reason why BetterHelp has issued the refund notices. The company has agreed to a settlement of $1.75 million without admitting any guilt or wrongdoing, highlighting its commitment to disputing the claims strongly. The decision to settle, instead, appears to be a strategic move to avoid the uncertainty and cost of continued litigation.
Customers who have received the refund notices are eligible for a payment equating to approximately 15% of their total membership fees that were paid to BetterHelp between 22nd of August, 2018, and 17th of September, 2020. It is noted, however, the window to claim these refunds is limited and all applications were required to be submitted before March 8, 2022.
While this incident does serve as a reminder of the importance of data privacy and user trust, it is crucial to highlight that BetterHelp still ensures its users that their platform upholds the highest standards of privacy and data protection. Notwithstanding this legal hiccup, BetterHelp pledges its continued dedication to providing its users with accessible and quality mental health services in the digital realm.