The U.S. Federal Trade Commission (FTC) has begun 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 engaged in deceptive or unfair practices related to advertising or marketing of mental-health services, according to the WSJ report.
The letter asked Cerebral to preserve documents and also sought information related to programs where the company continues to bill customers a subscription fee until the customer cancels, the report said.
Cerebral declined to confirm the FTC probe but said it is cooperating with the antitrust body.
The FTC was not immediately available for comment.
The company said in December it had raised $300 million in a funding round led by SoftBank Vision Fund 2, lifting its valuation four-fold to $4.8 billion in less than six months after its last capital raise.
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