The US Federal Trade Commission (FTC) filed a lawsuit against telehealth provider Hims & Hers on July 29. The complaint was filed in a California federal court jointly with Utah and Los Angeles County, although some sources report the co-plaintiffs as Utah and the state of California.
Hims & Hers is a publicly traded company that offers telehealth appointments and prescriptions for conditions including erectile dysfunction, hair loss, and mental health issues. It is one of the largest players in the market for weight loss drugs. Following the news of the lawsuit, the company’s stock fell approximately 12 percent.
Allegations of data sharing
The FTC alleges that Hims & Hers shared users’ sensitive health data with online advertisers. The complaint states the company used tracking technologies, including pixel-sized trackers from Meta, Snap, Microsoft, Pinterest, Reddit, X, Google, and TikTok, to capture and share this information. The agency also alleges the company used Meta’s tools to track users’ clicks and other actions on its website.
According to the FTC, Hims & Hers promoted its services as “private” and “discreet” across its website, television, radio, podcast advertising, and influencer campaigns. The agency claims the company told consumers its services were “100% online, private, and secure” and that medical records would only be accessed by healthcare providers managing their care.
Billing and cancellation practices
The lawsuit alleges deceptive billing and cancellation practices. The FTC claims Hims & Hers charged users for prescriptions before they had a chance to meet with healthcare providers. It states that most customers did not receive a consultation and were charged after filling out an intake form. The complaint alleges that when consumers fill out a medical history, they are signing up for a subscription that continually renews and bills them.
The FTC further alleges that patients are given “virtually no opportunity to review the provider’s recommended treatment, much less consent to it.” The agency claims the company failed to clearly disclose refill dates and made subscriptions difficult to cancel by hiding options behind multiple menus and retention screens. Hims & Hers advertised “free consultations” and told consumers they could decide whether a treatment was right for them before purchasing medication, according to the complaint.
Company response
Hims & Hers denied all allegations. In a post on the social media platform X, the company called the claims baseless. It stated: “This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense.” The company added that the lawsuit disregards substantial evidence provided to the FTC during its nearly three-year investigation.
Hims & Hers stated that its privacy policy makes clear that users may choose how their data is used and that it is confident in its position. The company argued that the FTC’s lawsuit ignores established state laws and industry standards in telehealth and contorts the law to try to manufacture claims.
Legal context
The lawsuit alleges violations of the FTC Act, the Restore Online Shoppers' Confidence Act, California's False Advertising Law and Unfair Competition Law, and Utah's Consumer Sales Practices Act. The FTC and its state partners are seeking a permanent injunction, monetary relief, civil penalties, and other relief. According to the FTC, the commission files a complaint when it has “reason to believe” that the named defendants are violating the law.
The FTC has previously taken action against Cerebral, Monument, GoodRx, and BetterHelp for similar data sharing practices. In a separate case, in 2024, TechCrunch found that the US Postal Service was sharing logged-in users’ home addresses with Meta, LinkedIn, and Snap by using their pixel tracking code; the USPS removed the code soon after.