The U.S. Federal Trade Commission (FTC) has filed a lawsuit against telehealth platform Hims & Hers, alleging the company shared users' sensitive health data with online advertising companies, including Meta Platforms and Snap, despite promising customer privacy. The lawsuit, filed in conjunction with Los Angeles County and Utah, also accuses the company of deceptive billing and cancellation practices.
Hims & Hers, a significant player in telehealth services for conditions like erectile dysfunction, hair loss, and weight loss, allegedly shared user data with advertisers despite marketing itself as a private platform. This practice led to a significant drop in the company's stock, which was trading down around 12% following the news.
According to the FTC, Hims & Hers also engaged in deceptive billing by charging users for prescriptions before they had a chance to consult with a healthcare provider. The agency claims that most customers are charged shortly after filling out an intake form, without a formal consultation. Furthermore, the FTC stated that Hims & Hers makes it difficult for users to cancel their subscriptions.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated that the commission "will not hesitate to act on behalf of consumers deprived of their ability to choose which products they want and whether to keep their most sensitive health information private."
Hims & Hers has publicly denied the allegations, calling the FTC's claims baseless in a post on social media site X. The company asserted that the lawsuit is "not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense."