BetterHelp Class Action: Therapy Platform Accused of Misleading Users, Prioritizing Profits

Case Overview: A class action lawsuit has been filed against BetterHelp, alleging that the company misled users about therapist qualifications, shared sensitive data, and prioritized profits over patient care.

Consumers Affected: Individuals who used BetterHelp's online therapy services.

Court: U.S. District Court for the Northern District of California, San Jose Division

BetterHelp, the popular online therapy platform, is under fire in a new lawsuit claiming that the company has misled vulnerable users and prioritized profits over mental health. 

The lawsuit accuses BetterHelp of unethical business practices, including failing to match patients with appropriate therapists, making misleading claims about the qualifications of its providers, and violating patient trust.

“BetterHelp’s unethical and fraudulent business practices are putting vulnerable patients at risk, depriving them of the care they deserve, and damaging their trust in the mental health industry,” the lawsuit alleges.

BetterHelp Accused of Misleading Users, Prioritizing Profits Over Patient Care

California resident Jenna Rodarte filed the proposed class action lawsuit against Betterhelp, saying that, like many other users, she turned to BetterHelp in search of convenient and affordable therapy, only to find that the service allegedly failed to deliver on its promises.

Rodarte, who identifies as part of the LGBT community, initially sought therapy through BetterHelp in 2020. As part of the intake process, she specifically requested a therapist who had experience with LGBT issues. However, instead of being paired with a supportive therapist, she was matched with one who was unsympathetic and dismissive of her identity, the lawsuit alleges. 

In one session, Rodarte disclosed her sexuality, only to be met with shock and harmful advice. The therapist discouraged her from reading books with “female friendships” and warned her against walking in parks, claiming she could be assaulted. This insensitive and misinformed guidance had a negative impact on Rodarte’s mental health, leading her to cancel her BetterHelp membership, the lawsuit alleges.

When Rodarte returned to the platform, she was assigned another therapist, but this time the therapist lacked the proper licensing to treat patients in California, and the sessions were plagued with technical difficulties. Rodarte claims that had she known about these issues, she would not have paid for the service.

Lawsuit Claims BetterHelp Failed to Provide Qualified Therapists

Founded in 2013 by two entrepreneurs without healthcare backgrounds, BetterHelp was designed to provide virtual therapy through a subscription-based service. The idea was simple: users could connect with licensed therapists via text, video, and audio. However, after being acquired by Teladoc in 2015, the company’s focus shifted heavily toward marketing and expansion.

BetterHelp’s rapid growth brought with it many problems, the lawsuit alleges, including that the company failed to build a large enough network of qualified therapists to keep up with demand. Rather than turning patients away when therapists were unavailable, BetterHelp continued accepting new clients and assigning them to therapists who may not have the appropriate expertise or licenses for their specific needs, the lawsuit alleges.

BetterHelp's Data Sharing Practices Under Scrutiny

As the company grew, the lawsuit claims that BetterHelp operated more like a tech company than a healthcare provider, prioritizing profits over patient care. One particularly damaging revelation came in 2020, when BetterHelp was accused of sharing sensitive user data with Facebook for advertising purposes. This included information about how often users engaged with the app and even metadata from therapy sessions.

According to the lawsuit, the operation of BetterHelp caused significant harm to users, many of whom sought therapy for serious mental health issues like depression and anxiety and were left with inexperienced or unavailable therapists, and their sensitive health data unprotected.

The lawsuit argues that this breach of confidentiality is just one example of how BetterHelp's profit-driven approach has put users at risk. By cutting corners and failing to invest in the proper infrastructure to support mental health services, BetterHelp has allegedly harmed the very people it claims to help, the lawsuit claims.

Online Therapy Platforms Face Legal Challenges Over Privacy and Misleading Claims

This isn’t the first time BetterHelp has run into issues with users. In July 2023, the Federal Trade Commission ordered the company to pay $7.8 million to resolve claims that it shared sensitive health data with third parties, including Facebook and Snapchat, despite promising users that their information would remain private.

Similarly, online therapy platform Talkspace is currently dealing with a class action lawsuit for allegedly sharing user data with TikTok without consent. The lawsuit claims that Talkspace installed TikTok’s tracking software on its website, allowing sensitive data to be sent to the app, raising concerns about privacy and data protection.

In her proposed class action lawsuit against BetterHelp, Rodarte wants to represent consumers from California in the allegations of violations of the state’s business laws. She is seeking injunctive relief, restitution, interest, fees, and costs.

Case Details

• Lawsuit: Rodarte v. Betterhelp, Inc.
• Case No.: 5:24-cv-07154
• Court: U.S. District Court for the Northern District of California, San Jose Division

Plaintiffs' Attorneys

• Rafey S. Balabanian and Jared Lucky (Edelson PC)

Have you used BetterHelp or other online therapy platforms? Share your experiences and thoughts in the comments below.