The U.S. Federal Trade Commission (FTC) has sued Hims & Hers, alleging the telehealth platform shared users' sensitive health information with online advertisers, including Meta Platforms and Snap, despite promising privacy. The lawsuit, filed with Los Angeles County and Utah, also accuses the company of deceptive billing and cancellation practices.
Hims & Hers, a major player in the telehealth market for weight loss, erectile dysfunction, hair loss, and mental health medications, denied the allegations. The company called the claims "baseless" and vowed to defend itself in court. Shares of Hims & Hers fell sharply following the news, dropping around 10-12%.
The FTC alleges that Hims & Hers shared user data through tracking technologies embedded on its website, violating privacy promises made to consumers. The agency also claims the company charged users for prescriptions before they consulted with healthcare providers and made it difficult for users to cancel subscriptions.
Hims & Hers responded by stating that the lawsuit disregards substantial evidence provided during the FTC's nearly three-year investigation. The company maintains that its privacy policy clearly outlines how user data is used and that customers have control over their information.
The FTC's complaint highlights concerns about consumer privacy and deceptive business practices in the telehealth industry. The agency emphasized the importance of protecting sensitive health information and ensuring transparency in billing and subscription management.