U.S. markets close in 1 hour 28 minutes
  • S&P 500

    4,261.92
    +54.65 (+1.30%)
     
  • Dow 30

    33,650.06
    +313.39 (+0.94%)
     
  • Nasdaq

    12,987.66
    +207.75 (+1.63%)
     
  • Russell 2000

    2,007.81
    +32.55 (+1.65%)
     
  • Crude Oil

    92.07
    -2.27 (-2.41%)
     
  • Gold

    1,816.90
    +9.70 (+0.54%)
     
  • Silver

    20.75
    +0.40 (+1.97%)
     
  • EUR/USD

    1.0266
    -0.0059 (-0.57%)
     
  • 10-Yr Bond

    2.8550
    -0.0330 (-1.14%)
     
  • GBP/USD

    1.2142
    -0.0061 (-0.50%)
     
  • USD/JPY

    133.4820
    +0.4830 (+0.36%)
     
  • BTC-USD

    24,025.10
    -159.58 (-0.66%)
     
  • CMC Crypto 200

    570.87
    -0.41 (-0.07%)
     
  • FTSE 100

    7,500.89
    +34.98 (+0.47%)
     
  • Nikkei 225

    28,546.98
    +727.65 (+2.62%)
     

Softbank-Backed Mental Health Startup Cerebral Under FTC Scrutiny: WSJ

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • The Federal Trade Commission (FTC) has begun investigating mental-health startup Cerebral Inc on its potential engagement in unfair practices related to advertising or marketing of services.

  • The FTC letter, reviewed by the Wall Street Journal, also directed the company to preserve documents.

  • In particular, the commission seeks information related to the program(s) where Cerebral continues to bill customers a subscription fee until the customer cancels, also called “negative option programs.”

  • According to the WSJ report, several patients struggled to cancel their accounts and receive refunds for services they didn’t use. Some patients said they had to ask their financial institutions to block Cerebral to stop the charges.

  • Cerebral reached a $4.8 billion valuation less than two years after it launched its services, raising nearly $500 million in capital from A-list investors, including SoftBank Group Corp (OTC: SFTBY).

  • Cerebral said it would cooperate with the FTC and is working to improve its service for patients.

  • The company said it has recently attempted redesigning the cancellation process.

  • Image by Okan Caliskan from Pixabay

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.