The US Federal Trade Commission (FTC) has filed a lawsuit against telehealth provider Hims & Hers, alleging the company shared users' sensitive health information with online advertising platforms and engaged in deceptive billing practices. The agency, joined by Los Angeles County, US and Utah, US, accused the company of violating promises made to protect user data.
According to the FTC, Hims & Hers used tracking technologies on its website to transmit personal health data to third parties, including Meta Platforms and Snap Inc. The complaint states that these actions were inconsistent with the company’s public commitments to safeguard patient privacy.
Billing and cancellation allegations
The lawsuit also targets the company’s subscription model. The FTC alleges that Hims & Hers charged customers for prescriptions before they had spoken with a healthcare provider. Many users were reportedly billed after completing an intake form rather than following a medical consultation. Additionally, the agency claimed the company made it difficult for subscribers to cancel their services.
Hims & Hers denied the allegations in a statement posted on X. The company argued that the lawsuit 'contorts the law to try to manufacture claims' and stated it would 'vigorously defend' itself against the charges.
Background and financial impact
Hims & Hers has become one of the largest providers in the fast-growing market for weight loss medications, offering virtual appointments and prescriptions for weight loss drugs, erectile dysfunction, hair loss, and mental health conditions. The FTC’s investigation into the company’s practices began in October 2023.
In April, the FTC formally communicated its findings to Hims & Hers, leading to settlement discussions. The company disclosed a $15 million probable-loss accrual in May related to the matter, warning that the final cost could be significantly higher. Hims & Hers stated it had made a settlement offer without admitting wrongdoing.
CNBC has previously reported on various probes into the company’s business practices, including its advertising campaigns and the sale of compounded weight loss medications.