FTC Sues Telehealth Provider Hims & Hers Over Data Sharing and Deceptive Practices

The U.S. Federal Trade Commission (FTC) has filed a lawsuit against telehealth provider Hims & Hers, alleging the company shared sensitive user health data with online advertisers, including Meta Platforms and Snap, despite promising privacy. The complaint, filed jointly with Los Angeles County and Utah, also accuses Hims & Hers of engaging in deceptive billing and cancellation practices.

According to the FTC, Hims & Hers led customers to believe their health information was private, yet allegedly transmitted it to advertising firms. The company, a significant player in the telehealth market for weight loss, erectile dysfunction, hair loss, and mental health medications, also stands accused of charging users for prescriptions before they had a chance to consult with healthcare providers. The agency claims most customers are billed soon after completing an intake form, often without a consultation. Furthermore, the lawsuit alleges Hims & Hers made it difficult for users to cancel their subscriptions.

Following the news, Hims & Hers stock saw a decline of approximately 12%. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated, "The FTC 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 vehemently denied the allegations, calling them "baseless" in a post on social media platform X. The company asserted, "This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense."