Approximately 800,000 clients of the online therapy platform BetterHelp will soon be receiving refund notices as part of a settlement with the Federal Trade Commission (FTC), according to an announcement made by the agency on Thursday.

BetterHelp Settles FTC Case

Last year, BetterHelp reached a settlement with the FTC, agreeing to pay $7.8 million. The settlement was a result of charges that BetterHelp had used user data, which includes personal health questions, for advertising purposes. 

According to NBC News, this sensitive information was shared with social media platforms such as Facebook and Snapchat. It was alleged that BetterHelp did not obtain consumers' consent in the appropriate manner, according to the FTC. 

BetterHelp has denied the allegations. The company emphasized in a recent statement its strong dedication to protecting the privacy of its members and the importance it places on the trust placed in its services.

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BetterHelp Refunds: Eligibility Criteria

Customers who are qualified for a refund are those who made payments for services on BetterHelp or its associated websites, such as MyTherapist, Teen Counseling, Faithful Counseling, Pride Counseling, iCounseling, Regain, as well as Terappeuta, between Aug. 1, 2017, and Dec. 31, 2020.

According to The Associated Press, individuals will receive refunds amounting to slightly less than $10 each.

The company is currently under the ownership of Teladoc Health, an online medical services group.

However, Teladoc Health's share price has experienced a significant decline as the COVID-19 pandemic has subsided.

In its latest earnings report, Teladoc Health highlighted a decrease in usership and revenue within its BetterHelp segment.

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