FTC Sues Hims & Hers Over Data Privacy and Billing Tactics

Shares of Hims & Hers Health tumbled 10% on Wednesday after the Federal Trade Commission launched a lawsuit accusing the telehealth provider of deceptive billing and privacy practices. Regulators claim the firm exposed sensitive user health data to advertising platforms while trapping customers in difficult-to-cancel subscription cycles.

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FTC Sues Hims & Hers Over Data Privacy and Billing Tactics

The FTC, partnering with officials from Los Angeles County and Utah, alleges that Hims & Hers shared private health information with Meta and Snap. These disclosures reportedly occurred via tracking tools embedded on the company’s website, contradicting public promises regarding data security. Beyond privacy concerns, the complaint highlights a billing structure where customers are charged for prescriptions before they ever consult with a medical professional.

Hims & Hers categorically denied these claims in a statement on X, accusing the regulator of contorting the law to manufacture a case. The company stated it provided substantial evidence during a three-year investigation and plans to mount a vigorous defense. This legal escalation follows a period of rapid growth for the firm, which has become a major player in the market for weight loss medications and other direct-to-consumer treatments. The company previously disclosed a $15 million probable-loss accrual in May, though the new lawsuit suggests that figure may underestimate the potential financial impact of the ongoing dispute.

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