Telemedicine company stock his and her health Shares plunged Wednesday after the Federal Trade Commission accused the company of misleading consumers about privacy protections, billing practices and subscription cancellations.
The FTC, joined by Los Angeles County and the State of Utah, alleged that Hims & Hers shared users’ sensitive health information with online advertising platforms, including: meta platform and Snap Co., Ltd. Through tracking technologies embedded in websites. The agency said the company’s actions were inconsistent with its promise to protect users’ health data.
The FTC also accused Hims and Hers of charging customers for prescriptions before consulting with a health care provider. The agency claims many customers are being charged after filling out a medical history form, rather than after consulting with a medical professional.
Regulators also allege that the company made it difficult for users to cancel their subscriptions.
Hims & Hers denied the allegations in a post to
The company said it was confident in its position and “will vigorously defend itself.”
The lawsuit comes as Hims & Hers has emerged as one of the largest telemedicine providers in the burgeoning weight-loss drug market. The company offers virtual appointments and prescriptions for treatments such as weight loss drugs, erectile dysfunction, hair loss drugs, and mental health drugs, which are shipped directly to consumers.
The FTC investigation dates back to October 2023. CNBC reported on several investigations into Hims & Hers’ business practices, including Super Bowl ads and compounded weight loss pills.
In April, the FTC formally informed the company of its findings, which began in 2023, and settlement talks began. Hims & Hers revealed in May that it was facing a projected loss of $15 million related to the issue, and warned that the final cost could be significantly higher. The company said it offered a settlement without admitting wrongdoing.
Wednesday’s lawsuit further escalates that dispute, with regulators pushing new claims.
