BetterHelp Controversy, News, & History

Recent News

Teladoc Acquiring Uplift

On April 30, 2025, Teladoc, BetterHelp’s parent company, announced its acquisition of Uplift, an online therapy and psychiatry platform that works with many insurance providers to offer in-network mental healthcare. It plans on using Uplift’s well-established system to potentially work toward credentialing more of its BetterHelp therapists as well, offering more accessible therapy to millions.

Recent Fall in Revenue

Recent reports have shown a $1 billion net loss at Teladoc in 2024, BetterHelp’s parent company, mostly due to BetterHelp’s $720 million goodwill impairment charge. The platform reported that users were down by about 11% at the end of 2024 compared to the previous year. For now, Teladoc Health anticipates that BetterHelp’s performance will keep declining in the short term, with revenue expected to decrease by up to 9.75% in 2025.

Controversies

BetterHelp has been in the spotlight for a few different reasons through the years, the most notable of which being its investigation by the FTC for the way it shared client’s data. Other issues include poor therapist-client matches from the BetterHelp algorithm and low therapist pay leading to burnout and the use of AI in chat-based therapy.

Data Sharing Led to an Investigation by the FTC

In 2023, BetterHelp was investigated by the Federal Trade Commission (FTC) for deceptive data collection practices. The offense centered around allegations that BetterHelp shared sensitive user data with third parties, including major companies like Meta (formerly Facebook), Snapchat, Criteo, and Pinterest.

According to an official release by BetterHelp, the company shared encrypted email addresses with Facebook to optimize its marketing strategy between 2017 and 2020. BetterHelp claims that this is a standard marketing practice in the industry, however, the FTC alleges that BetterHelp should have been more clear in explaining this to its users.

When we reached out for information on this, BetterHelp reiterated that the company “does not and has never shared with advertisers, publishers, social media platforms, or any other similar third parties, private information such as members’ names or clinical data from therapy sessions.” Additionally, BetterHelp stated that they have never received compensation for sharing data. However, companies like Facebook were allowed to use clients’ and potential clients’ information to target specific ads to these users, as well as using the information for research and development purposes.

BetterHelp’s Response

In March of 2023, BetterHelp settled with the FTC and agreed to pay $7.8 million in partial refunds to about 800,000 users who signed up for BetterHelp between August 1, 2017, and December 31, 2020. These users began receiving their partial refunds in May of 2024.

BetterHelp released a statement to ChoosingTherapy.com, and also updated its privacy policy, acknowledging that they worked with the FTC to reach these resolutions to the issue:

• Updated the BetterHelp privacy policy
• Told the advertising companies that received hashed, encrypted information was to be deleted
• Ceased sharing information with other companies for advertising
• Enhanced BetterHelp’s privacy program to better protect personal health information. An independent third party is auditing BetterHelp’s program to ensure information is being protected
• Anyone can visit BetterHelp’s privacy policy for more details as to how BetterHelp handles user data.

Is This an Industry-Wide Problem?

Yes, data-sharing and shifty privacy policies are an industry-wide concern, and BetterHelp was in no way the only mental health platform sharing user data. Talkspace, Cerebral, and chat-based apps like Youper and Woebot have all faced similar allegations.

Is This Issue Resolved?

Yes: BetterHelp has issued over $7.8 million in partial refunds and has updated its privacy policy. It no longer shares private user data with advertising agencies. You can read more in its privacy policy. As a general rule, clients coming to any online mental health service or app should read the privacy policy and ensure they are comfortable with what data could be shared.

Learn More

• Federal Trade Commission: FTC to Ban BetterHelp from Revealing Consumers’ Data, Including Sensitive Mental Health Information, to Facebook and Others for Targeted Advertising
• Federal Trade Commission: BetterHelp Customers Will Begin Receiving Notices About Refunds Related to a 2023 Privacy Settlement with FTC
• BetterHelp: BetterHelp’s Response to the Recent FTC Settlement
• The Guardian: ‘They thought they were doing good but it made people worse’: why mental health apps are under scrutiny

Issues With the Quality of Therapists on the Site

When you’re a therapy site as large as BetterHelp, there are bound to be mismatches in care and some therapists who “phone in” their sessions with clients. Some BetterHelp users have taken to TikTok in the past few years to share issues they’ve had with their therapists, including one who would go on and on about her own problems instead of focusing on the client, and another whose therapist used the bathroom during a live video session.

Bad Algorithm Matches Leading to Unhelpful Therapy Sessions

When an algorithm matches you with a therapist, it’s not going to get the pairing right all the time. The Wall Street Journal highlighted this issue in its 2022 article regarding Caleb Hill, who sought therapy through BetterHelp after getting kicked out of his family’s home.

Hill has screenshots from when he explicitly requested a therapist who specializes in LGBTQ+ concerns, but instead he was matched with someone who, according to his BetterHelp profile, has no LGBTQ+ experience and who practices Christian counseling. He expressed to his therapist that he missed his family, after which the therapist suggested, “Either you sacrifice your family or you sacrifice being gay.”

BetterHelp’s Response

While they didn’t specifically respond to Hill’s issue, a BetterHelp representative told Business Insider, “We firmly stand behind the high-quality service provided at BetterHelp, both in successful therapist matching and ongoing care.” They also stated that 85% of users have a subsequent session after their first appointment.

BetterHelp has offered a detailed explanation regarding how it handles serious therapist issues on the platform:

We are very committed to the safety and quality experience of our members. We have a 9–person team of licensed therapists (called our “Clinical Operations team”) that is dedicated to ensuring that therapists on our platform practice therapy that is up to our high standard of care. They maintain an extensive quality review process that allows them to react and respond quickly when members express a concern about a therapist.

When a member enquiry is received, it is reviewed and triaged. While many enquiries are minor in nature and can be addressed quickly, more severe concerns are escalated to a team that is equipped to do internal investigations. This investigation may involve speaking to the client further and speaking with the therapist. It may also include a comprehensive review where the team looks at the therapist holistically. In this circumstance, the team looks for violations of codes of ethics, codes of conduct, and the BetterHelp platform terms. Anyone found in violation of these will be subject to some form of discipline and/or education, and may be removed from the platform – and if possible, the team tries to address the situation before it gets to that point.

Our Clinical Operations team also collects metrics in the background regarding therapist–performance on an ongoing basis. Therapists who provide services that produce consistently positive outcomes with their clients are incentivized to keep doing so, while therapists with poor performance or unacceptable behavior can experience lesser referrals, various restrictions, and/or be removed from BetterHelp altogether.

While we are always working to proactively address quality concerns ourselves, members are also free to file complaints & grievances directly to a therapist’s respective licensing board – the entity that governs their ability to practice therapy.

Is This an Industry-Wide Problem?

Yes, many online therapy platforms rely on algorithms to match clients with therapists. However, BetterHelp’s platform exacerbates this issue by relying almost entirely on an algorithm instead of making it simple for users to browse through a list of therapists licensed in their state. This is technically possible to do, but it requires a workaround.

This is in contrast to other online mental health platforms like Grow Therapy, Brightside Health, and Open Path Collective, which have robust search filters for their directories, allowing clients to hand-pick their providers.

Is This Issue Resolved?

No, users continue to have issues with BetterHelp’s therapist matching algorithm. Many report it takes at least a few tries before finding a therapist who could be a good fit for their needs.

Learn More

• The Wall Street Journal: The Failed Promise of Online Mental-Health Treatment
• Therapy Today on YouTube: What is Wrong with BetterHelp? Therapist Reacts!
• Mad In America: Therapy by App: A Clinical Psychologist Tries BetterHelp
• Susannah Friesen on YouTube: The Mental Health Revolution That Went Horribly Wrong
• Andreia Gibau on TikTok: $300 to be gaslit by a therapist
• Ryan Crouse on TikTok: betterhelp was $300 down the drain

Concerns About Therapists Using AI

Additionally, a Blue Orca Capital report from February 2025 notes that several whistleblowers have come forward to confirm that many therapists on the platform are using AI, such as ChatGPT, to provide “therapy” to their clients without the clients’ knowledge. They believe that therapists receive bonuses tied to the amount of words they use when responding to clients on the messaging platform. This could be a huge violation of trust for many.

BetterHelp’s Response

In an official letter from its legal representation, Teladoc insisted that it prohibits its therapists from utilizing AI during sessions:

To be clear, BetterHelp expressly prohibits therapists from disclosing any member
personal or health information to third-party AI. BetterHelp has a Trust and Safety team
dedicated to the detection and prevention of non-compliant use of AI and, if anything, has structured its platform (and its incentives to therapists) to promote live video calls over asynchronous messaging. BetterHelp’s Privacy Policy provides further disclosures to members concerning its AI practices. Accordingly, Teladoc disputes Blue Orca’s vague and unsubstantiated allegation that a “meaningful” number of BetterHelp members receive AI therapy.

Is This an Industry-Wide Problem?

While this issue could permeate any company that offers text-based therapy (a few different Reddit posts also called out Talkspace), BetterHelp has been the main target to come under fire for how widespread the issue seems to be on its platform.

Is This Issue Resolved?

No, this is an ongoing problem with chat-based therapy, as there’s no way to expressly prohibit therapists using AI tools and LLMs when texting with clients.

Learn More

• Blue Orca Capital: Teladoc Health, Inc. report
• Teladoc: Teladoc Research Report of February 18, 2025
• Telecare Aware: Teladoc responds to Blue Orca’s report on BetterHelp’s AI ‘therapy’
• Behavioral Health Business: BetterHelp Wilts While Other Teladoc Mental Health Services Bloom
• Medium: Artificial Empathy: My BetterHelp Therapist Took an AI Shortcut

Low Therapist Salaries

Therapists on the BetterHelp platform have taken to Indeed, Reddit, and other online platforms to express their concerns with the pay structure it utilizes. Therapists make an average of about $30.20 per hour, 21% below the national average for mental health professionals. On Indeed, only 19% of BetterHelp contractors feel that their salary is appropriate for the work they do.

The amount made per hour increases the more hours a therapist works on the platform, leading to some concerns of overworking just to make ends meet. This may lead to distracted therapists trying to perform video sessions and respond to messages simultaneously, or could be the reason some therapists have been accused of using AI tools to respond to more messages in a day.

BetterHelp’s Response

Here’s BetterHelp’s official statement on therapist pay, according to a “Your Questions Answered” article on its site:

Therapists and psychologists on BetterHelp can earn as much as $91,000 a year, assuming 52 working weeks in a year. Actual earnings may vary due to factors such as location, caseload, client engagement on the platform, and other metrics. For therapists with a full caseload on BetterHelp, we also provide a Health Benefit Stipend of $650 per month.

Given the scale of BetterHelp’s therapist and client base, we’ve found that the best compensation model is one that is based on engagement. At a very basic level, this means that the more clients a therapist works with, the higher the therapist’s compensation will be. The system is designed in a way that strives to encourage therapists to work with as many clients as they’re comfortable with, compensate them fairly for their time, and help ensure a high quality of service for the client.

Is This an Industry-Wide Problem?

Yes, several online therapy platforms have garnered complaints from providers about insufficient pay compared to private practice. Many therapists have complained about low compensation rates from various online therapy platforms (e.g. Talkspace recently changed its pay structure, significantly reducing what therapists can make on the platform, and there are similar feelings about Cerebral). However, BetterHelp’s pay structure is on the lower end of what’s industry standard.

Is This Issue Resolved?

It is unlikely that BetterHelp will change its compensation structure any time soon.

Learn More

• Indeed: Therapist hourly salaries in the United States at BetterHelp
• Reddit r/therapists: How much do Betterhelp therapists make?
• BetterHelp: Does BetterHelp compensate their therapists fairly?

General History

• Founded in 2013 by Alon Matas and Danny Bragonier
• Acquired by Teladoc in 2015 for $4.5 million
• Settled with the FTC in 2023 for $7.8 million for sharing private user data
• Teladoc lost $1 billion in revenue in 2024, in large part due to a $790 million goodwill impairment charge linked to BetterHelp
• In 2024, Teladoc announced that it would continue expanding to more countries internationally