How the Cerebral and BetterHelp Cases Reveal the Real Cost of Deceptive Mobile Marketing
Mobile marketing works best when it feels helpful rather than manipulative. The FTC’s actions against companies such as Cerebral and BetterHelp demonstrate how quickly consumer trust can be damaged when companies fail to prioritize transparency, privacy, and honest communication, making ethical marketing practices more important than ever.
Why Mobile Marketing Laws Matter
Mobile Marketing has become part of our everyday lives. Whether we are scrolling through social media, checking email, receiving text alerts, or downloading apps, businesses have more opportunities than ever to communicate directly with consumers through their mobile devices. When done responsibly and ethically, these interactions can be helpful, personalized, and convenient. However, when businesses misuse consumer data or make it difficult for customers to understand their choices, mobile marketing can quickly shift from helpful to harmful.
The FTC’s Actions
Although the details of the Cerebral and BetterHelp cases differ, both demonstrate the importance of honesty and adherence to FTC regulations. Both Cerebral and BetterHelp violated Section 5 of the Federal Trade Commision Act, which prohibits unfair or deceptive acts or practices in commerce (Federal Trade Commission Act, 15 U.S.C. § 45(a), 1914).
In the case of Cerebral, the FTC found issues related to deceptive cancellation practices that made it difficult for consumers to cancel their subscriptions, resulting in unwanted charges (States News Service, 2025). BetterHelp faced FTC action after allegations that the company shared consumers sensitive health information with advertising platforms despite promising to keep that information private (FTC, 2024).
What About the Consumer?
Consumers experience financial, privacy, and emotional harm when businesses engage in deceptive marketing practices. Cerebral consumers reportedly faced continued subscription charges after attempting to cancel services (States News Service, 2025). BetterHelp consumers experienced privacy concerns when sensitive mental health information was allegedly shared with third parties for advertising purposes (FTC, 2024). Beyond financial losses and privacy violations, these situations can damage consumer trust and make consumers less willing to engage with digital services in the future.
Financial Penalties and Organizational Changes
The FTC’s actions against both Cerebral and BetterHelp demonstrate that companies can face significant financial consequences when they engage in deceptive or unethical marketing practices. In Cerebral’s case, the FTC’s enforcement action resulted in more than $5 million in refunds being distributed to affected consumers who experienced issues related to the company’s cancellation practices (States News Service, 2025). Similarly, BetterHelp was required to provide $7.8 million in refunds to consumers as part of its settlement with the FTC (FTC, 2024).
Companies may face more than financial penalties. FTC enforcement actions can also require organizations to change business practices, strengthen privacy protections, delete improperly collected data, and submit to ongoing regulatory oversight (FTC, 2024). These actions can expose businesses to reputational harm, resulting in lost consumer trust, negative publicity, and long-term challenges in rebuilding brand credibility.
How can Mobile Marketing Remain Ethical
Ethical mobile marketing begins with permission-based marketing practices, which require consumers to voluntarily opt in before receiving promotional messages or communications (Zahay, 2024). Marketers should also be transparent about pricing, subscription terms, cancellation procedures, and data collection practices. Compliance with regulations such as the CAN-SPAM Act helps ensure consumers can easily opt out of communications and are not subjected to misleading messages (Federal Trade Commision, 2024). As privacy laws continue to expand across the United States, marketers must also clearly explain how consumer data is collected, stored, and shared (Davis, 2024).
The FTC actions against Cerebral and BetterHelp serve as important reminders that successful mobile marketing is built on trust. While mobile technologies provide powerful opportunities for businesses to connect with consumers, those opportunities must be balanced with transparency, ethical , decision-making, and respect for consumer rights. Companies that prioritize these principles are more likely to build long-term customer relationships while avoiding costly legal and reputational consequences. In an increasingly digital world, earning consumer trust may be a company’s most valuable marketing asset.
References
Davis CIPM (IAPP), M. (2024). Privacy Laws 2025: Prepare for the 8 Laws Going into Effect. Osano.com. https://doi.org/107540355660/1728402644863
Federal Trade Commission. (2024, January). CAN-SPAM act: A compliance guide for business. Federal Trade Commission. https://www.ftc.gov/business-guidance/resources/can-spam-act-compliance-guide-business
Federal Trade Commission Act, 15 U.S.C. § 45(a). 1914
FTC. (2024, May 2). BetterHelp Refunds. Federal Trade Commission. https://www.ftc.gov/enforcement/refunds/betterhelp-refunds
States News Service. (2025, May 8). MORE THAN $5 MILLION IN REFUNDS SENT TO CONSUMERS AS A RESULT OF THE FTC’S ACTION AGAINST CEREBRAL OVER DECEPTIVE CANCELLATION PRACTICES. States News Service. https://advance.lexis.com/api/document?collection=news&id=urn%3acontentItem%3a6FS1-29H3-RV8S-B3S9-00000-00&context=1519360&identityprofileid=54Q9Q854566
Zahay, D. (2024). Digital Marketing Foundations and Strategy. Cengage Learning. https://mbsdirect.vitalsource.com/reader/books/9780357720776
Leave a comment