Data Privacy Happenings
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BetterHelp, a company that’s seeking to expand access to mental health resources in America, was fined $7.8 million by the FTC in early March for improperly sharing customers’ sensitive health data with third parties for advertising purposes, including social media platforms.
If you’ve spent any amount of time on Youtube over the past few months, you’ve come across some of BetterHelp’s cringe-worthy preroll ads. With the revelation that the company was sharing sensitive data to try and improve digital advertising between 2017 and 2020, the ubiquitous presence of those ads is all the more sinister.
Of course, despite the 8-figure agreement, BetterHelp maintains it did nothing out of the ordinary, releasing a statement in response to the fine that’s full of pushback. It features language like, “The FTC alleges…” and “this settlement, which is no admission of wrongdoing, allows us to continue to focus on our mission.”
BetterHelp’s reasoning is that sharing encrypted data for advertising purposes is “industry-standard practice.” While that may be true, BetterHelp had explicitly promised not to share such information, and did so anyway.
Reading the FTC’s complaint, that deceit is the main basis for the massive fine, not the fact that they shared sensitive data.
The agreement now bans BetterHelp from revealing future sensitive customer data, but the damage to the brand is done. Brands who pay lip service to the importance of data protection and trust, especially when those brands are in the healthcare industry (🤦‍♂️) , are only burning customers and making people angrier when they engage in unsavory data-sharing practices.
BetterHelp knew the value of data protection, which is why they set privacy promises to begin with, but the company clearly didn’t take the repercussions of breaking those promises seriously enough, either because they didn’t think people would ever find out or they simply valued the advertising more than users’ right to privacy.
On one hand, this case highlights the need for reform and modernization to regulations surrounding data privacy in healthcare, as many in the industry do share customer data with third parties.
On the other, let this be a wake-up call for companies that are not living their values.
It’s 2023: everyone knows the value of data and everyone knows the vast majority of people don’t want theirs shared willy-nilly for profit. Companies should be reflecting these beliefs within their privacy programs.
If a company says one thing and does another in spite of that awareness, it’s the worst offender of the bunch. Be better than BetterHelp.