(Reuters) – The Federal Trade Commission has launched an investigation into SoftBank-backed mental health startup Cerebral Inc., the Wall Street Journal reported on Tuesday, citing a letter the antitrust body sent to the company.
In the letter, dated June 1, the FTC said it was investigating whether the company was engaging in misleading or unfair practices related to advertising or marketing of mental health services, according to the WSJ report.
In the letter, Cerebral asked to preserve documents and also sought information related to programs where the company continues to charge customers a subscription fee until the customer resigns, the report said.
Cerebral declined to confirm the FTC investigation but said they were cooperating with the antitrust body.
The FTC was not immediately available for comment.
The company said in December that it had raised $ 300 million in a funding round led by SoftBank Vision Fund 2, which raised its valuation fourfold to $ 4.8 billion in less than six months after the most recent capital raising.
Cerebral provides mental health services, including consultation and prescribing of medicines, through its telecommunications health platform.
Telehealth platform recipes have been under review, with Walmart Inc. and CVS Health Corp. last month said it would stop filling prescriptions for controlled substances issued by telehealth startups Cerebral Inc. and Done Health
The WSJ reported last month that Cerebral had been issued a lawsuit by federal prosecutors as part of an investigation into possible violations of the Controlled Substances Act.