Teladoc’s BetterHelp Unit Faces FTC Ban on Health Data Sharing

Teladoc Health Inc.’s online mental health unit will be banned from sharing health information with Facebook parent Meta Platforms Inc. and other social media companies under a proposed settlement with US trade regulators.

BetterHelp, Teladoc’s online therapy business, will be barred from sharing data, including about mental health, for advertising purposes, the Federal Trade Commission said Thursday in a statement, alleging that the company violated privacy pledges for years. The company will also pay $7.8 million to resolve allegations that it revealed sensitive data to companies including Facebook and Snap Inc.’s Snapchat.

Online therapy companies that boomed ...