Digital marketing leaders, and especially those in the healthcare space, are no strangers to the fast-paced and constantly evolving world of data privacy. However, it is crucial to keep up-to-date with the evolving landscape, to avoid costly consequences such as the recent Federal Trade Commission (FTC) settlement with BetterHelp.
BetterHelp offers online counseling services through that name and through specialized versions for particular audiences, and consumers around the country shared mental health data with the company.
In March 2023, BetterHelp found itself in hot water with the FTC over allegations of deceptive marketing practices and violations of both data tracking and health privacy regulations. The settlement resulted in a fine of $2.2 million and requirements for BetterHelp to implement stronger privacy and data security measures.
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This case serves as a wake-up call to all digital marketing leaders to ensure their companies are compliant with the regulations surrounding data tracking and health privacy.
Here are some key takeaways from the settlement that can help prevent similar issues in the future:
1. Be transparent about data collection
BetterHelp was found to be collecting personal data – including IP addresses – from their prospects and customers, and sharing that data with major advertising platforms, including Facebook, Snapchat, Criteo, and Pinterest, without their knowledge or consent.
Digital marketing leaders need to be upfront and transparent about what data they collect and how it is being used. This can be done through clear privacy policies and user consent forms.
2. Implement Consumer Choice
The FTC found that based on the context in which the personal data was collected, BetterHelp was required to get affirmative express consent before disclosing consumer IP addresses and other contact information to third parties for advertising purposes and it was required to contractually limit those third parties from using the data for their own purposes.
Digital marketing leaders should make sure they have a simple, clear user experience in place to capture opt-ins and opt-outs, and proper contracts in place.
3. Implement a transparent privacy user experience
BetterHelp was found to have implemented “deceptive design” that effectively shared consumer data before a consumer could register a choice.
Digital marketing leaders should implement the Global Privacy Control, a clear privacy and choice center, and the appropriate technical advertising blocking measures to ensure that data is not shared when consumers register an opt-out or fail to appropriately opt-in.
In conclusion, the FTC settlement with BetterHelp serves as a reminder to digital marketing leaders to prioritize data privacy and security, as well as comply with regulations surrounding health claims. By being transparent about data collection, following health privacy regulations, implementing strong data privacy measures, and training employees on compliance, digital marketing leaders can avoid costly consequences and protect their customers’ personal information.