BetterHelp

BetterHelp is a mental health platform that provides online mental health services directly to clients. The online counseling and therapy services are provided through web-based interaction as well as phone and text communication.[1] BetterHelp was founded in 2013 by Alon Matas and Danny Bragonier, and acquired by Teladoc, Inc. in 2015. BetterHelp maintained its brand name post acquisition and continues to provide online counseling services to consumers.

BetterHelp
TypeSubsidiary
IndustryPsychotherapy
Founded2013 (2013)
Founders
  • Alon Matas
  • Danny Bragonier
HeadquartersMountain View, California, U.S.
Area served
Worldwide
ServicesOnline therapy
Unlimited messaging therapy
ParentTeladoc Health
Websitewww.betterhelp.com

History

BetterHelp was founded by Alon Matas in 2013,[2] after he faced personal challenges finding professional counseling services that accommodated his schedule. With the mission of helping all those facing similar challenges in gaining access to professional counseling, Matas partnered with co-founder Danny Bragonier to develop BetterHelp's web-based counseling portal and therapist directory. Revenue had reached a projected $60 million by 2018.[3]

Services

The "room" is open 24/7 and can be accessed from any Internet-connected device from any physical location.[4][5][6]

Acquisition

In 2015, BetterHelp was acquired by Teladoc, Inc., a telehealth company that uses telephone and videoconferencing technology to provide on-demand remote therapy. 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.[7]

Controversies

In October 2018, BetterHelp gained attention from media personalities after concerns were raised about alleged use of unfair pricing, bad experiences with the app, paid reviews from actors, and terms of service that allegedly did not correspond with ads promoted by professional YouTubers.[8] CEO Alon Matas issued a statement responding to the allegations.[9] YouTube content creators such as PewDiePie and Boogie2988 have spoken out on this issue.[8] BetterHelp has received backlash for supposedly sharing its customers' personal data with Facebook. In its latest privacy policy update, BetterHelp stated: "We may share your information in connection with an asset sale, merger, bankruptcy, or other business transaction."[10] The company has responded to these complaints by saying that law requires BetterHelp to hold on to health data and that they are not subject to HIPAA guidelines.[11]

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.[12] 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. "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," the complaint summarizes.[13]

See also

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. <Cohen, Sagi (24 July 2020). "Locked Down and Uptight? Israeli-founded Online Service Might Be the Solution". Haaretz.
  3. "Vulnerable Patients Exposed To 'Growth At Any Cost' Culture". Seeking Alpha. 1 November 2018. Retrieved 8 November 2018.
  4. "BetterHelp Online Therapy Review". Archived from the original on 2019-12-17. Retrieved 2020-03-01.
  5. "An app that links you to a therapist by text has plans for a major expansion — starting with prescribing drugs". Business Insider. Archived from the original on 2018-07-29. Retrieved 2018-07-28.
  6. 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
  7. 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.
  8. YouTube’s BetterHelp mental health controversy, explained Archived 2020-02-07 at the Wayback Machine, Polygon
  9. Alon Matas When BetterHelp found itself in a Youtube Controversy Archived 2018-10-17 at the Wayback Machine (October 9, 2018).
  10. Nicole Wetsman (May 4, 2022). "Mental health app privacy language opens up holes for user data". The Verge. Retrieved May 12, 2022.
  11. Thomas Germain (March 2, 2021). "Mental Health Apps Aren't All As Private As You May Think". Consumer Report. Retrieved May 12, 2022.
  12. "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. Retrieved March 4, 2023.
  13. "FTC In the Matter of BETTERHELP, INC. 2023169" (PDF). March 2, 2023. Retrieved March 4, 2023.
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