BetterHelp Lost 97% In 3 Years...What Happened?

Summary

BetterHelp, a major player in online therapy, faced significant backlash after being exposed for using unqualified therapists, mishandling user data, and exploiting vulnerable users. Despite the controversy, the company has resurfaced with aggressive marketing efforts. Although BetterHelp claims improvements, users and experts still report concerns about the quality of therapy provided. Further, the company was found to have shared sensitive user data with advertisers, leading to a $7.8 million fine. While the service aims to make therapy more accessible, critics argue that BetterHelp prioritizes scale over quality care.

Takeaways

• 😟 BetterHelp faced significant backlash for exploiting vulnerable users, using unqualified therapists, and selling sensitive user data.
• 💥 The scandal caused a massive exodus of users, plummeting their parent company's stock by 97%.
• 📈 Despite this, BetterHelp has made a strong comeback, sponsoring more creators and launching aggressive marketing campaigns.
• 💬 BetterHelp's initial appeal was its flexibility, offering cheaper, remote therapy through text, video, or call options.
• 😠 Users reported inconsistent therapist quality, with complaints about unprofessional behavior and therapists being distracted or unqualified.
• 📜 BetterHelp was criticized for not properly verifying therapist qualifications and initially placing the burden of verification on users.
• 🛑 The company was caught selling users' private mental health data to third-party advertisers, sparking further outrage.
• ⚖️ The U.S. Federal Trade Commission took action against BetterHelp, ordering a $7.8 million refund to 800,000 patients and banning data sharing for advertising.
• 📉 BetterHelp's marketing push in 2024 seems like a last effort to survive, as their user base has been steadily declining.
• 💡 While the concept of BetterHelp is promising, its execution has been flawed, prioritizing market dominance and scale over the quality of mental health care.

Q & A

What were the initial controversies surrounding BetterHelp?

BetterHelp was exposed for exploiting vulnerable users, using unqualified therapists, and selling sensitive user data. These issues led to a significant backlash, with tens of thousands of users unsubscribing and their parent company's stock plummeting by 97%.

How did BetterHelp's model initially seem beneficial to users?

BetterHelp appeared to make therapy more accessible and affordable. It allowed patients to sign up, get matched with a therapist, and have sessions via call, text, or video, making it more flexible than traditional therapy options. It also offered the option to switch therapists at no cost, making therapy more convenient and user-friendly.

What issues did users report about their experiences with BetterHelp therapists?

Many users reported unprofessional and inappropriate behavior from therapists, such as being late to sessions, trying to sell personal products like books, and displaying inattentive behavior like cooking or shopping during sessions. Some therapists provided unhelpful advice or displayed insensitivity, which caused distress to users.

Why was BetterHelp criticized for employing unqualified therapists?

BetterHelp was criticized because they did not guarantee the verification of the therapists' qualifications, skills, or credentials. According to their terms, it was the responsibility of the users to verify if the therapists were qualified, which caused concerns about the quality and reliability of the therapy provided.

What actions did the US Federal Trade Commission (FTC) take against BetterHelp?

The FTC took action against BetterHelp for sharing users' personal health information with third-party advertising platforms like Facebook, Pinterest, Snapchat, and Criteo without providing proper notice to consumers. As a result, BetterHelp was ordered to pay $7.8 million in refunds to 800,000 patients and was forbidden from sharing consumers' personal information for retargeting.

How did BetterHelp's marketing strategy change after the controversies?

Despite the controversies, BetterHelp launched an aggressive marketing campaign, sponsoring more YouTube videos and podcasts than ever before. For example, in March 2024, they spent $8.2 million on podcast advertising, indicating their efforts to rebuild their brand and regain market share.

Did BetterHelp improve the quality of their service after the controversies?

While BetterHelp increased the number of therapists from 16,000 in 2021 to 34,000 in 2024, the quality of the service remained a concern. Some users reported that therapists were still unprofessional, distracted, or unprepared, and the overall focus seemed to be on expanding rather than improving the quality of care.

What concerns did BetterHelp's data practices raise regarding user privacy?

BetterHelp was found to be sharing users' personal data with advertisers, such as how often they used the app or booked appointments, which violated the expectation of confidentiality common in traditional therapy settings. This caused significant outrage as therapy details are typically considered highly private and sensitive.

Why is BetterHelp's marketing strategy seen as problematic?

BetterHelp's marketing strategy portrays their service as a complete replacement for traditional therapy, even though their own terms acknowledge that their services might not be suitable for every situation. This could mislead individuals into using their platform when in-person therapy might be more appropriate for their needs.

What is the core issue with BetterHelp's approach according to critics?

Critics argue that BetterHelp prioritizes scaling and market dominance over providing quality care. The company appears to be more focused on growing its user base and increasing profitability, rather than ensuring that clients receive high-quality, effective therapy, which undermines the potential benefits of accessible mental health care.