FTC Files Lawsuit Against Hims & Hers

The Federal Trade Commission filed a lawsuit on Wednesday against Hims & Hers, alleging that the telemedicine company disclosed users’ health data to online advertisers, despite assurances of privacy. They also claimed the company used misleading billing and cancellation tactics.

According to the FTC, sensitive health information was passed on to advertising firms like MetaPlatform and Snap, while customers were under the impression that their data was secure. This lawsuit was brought in collaboration with Los Angeles County and the state of Utah.

In response to this news, shares of Hims & Hers fell by about 12%, further deepening their losses.

Hims & Hers is a significant player in the telemedicine market, particularly known for providing services related to weight loss medications, erectile dysfunction, hair loss, and mental health treatments, all delivered directly to users.

Christopher Mufarige, the FTC’s Director of Consumer Protection, stated, “The FTC will not hesitate to act on behalf of consumers who have been deprived of the ability to choose the products they want or to keep their most sensitive health information private.”

The company, on its social media account on X, dismissed the allegations as unfounded, claiming that the lawsuit was aimed at generating headlines, rather than focusing on consumer protection.

Additionally, the FTC accused Hims & Hers of prematurely charging users for prescriptions before they even had a chance to consult with a healthcare provider.

Many users, the agency noted, do not actually consult a healthcare provider and are billed for prescriptions right after submitting a medical history form. Moreover, it appears that canceling subscriptions with Hims & Hers is more challenging than it should be.