Key Takeaways:
The FTC alleges Hims & Hers shared users' erectile dysfunction and hair loss data with Meta and Snap while charging customers before consultations.
The Federal Trade Commission sued Hims & Hers Health Inc. on Wednesday, alleging the telehealth platform shared users' sensitive medical data with Meta Platforms and Snap while charging customers before they saw a doctor.
"The FTC will not hesitate to act on behalf of consumers deprived of their ability to choose which products they want and whether to keep their most sensitive health information private," Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said in a statement.
The complaint, filed in the Northern District of California with Los Angeles County and Utah, alleges Hims & Hers shared data on conditions including erectile dysfunction, premature ejaculation and hair loss with advertising platforms despite promising users the service was "100% online, private and secure." One customer was charged $897 before ever speaking to a healthcare professional, while another was billed $147 for a three-month supply of Lexapro after indicating they were "open to" medication on an intake form, according to the lawsuit.
The lawsuit threatens the business model of one of the largest telehealth players in the weight loss drug market, which counted 2.6 million subscribers as of its first-quarter results, up 9 percent year over year. Hims & Hers shares fell 12 percent Wednesday, erasing roughly $1.5 billion in market value, as investors priced in potential fines, operational changes and reputational damage.
The FTC also accused the company of violating the Restore Online Shoppers' Confidence Act by enrolling customers in recurring subscriptions without giving them a chance to review or decline treatment. Hims & Hers advertised "free" consultations and displayed "Pay $0 today" on intake forms, then charged patients as soon as a provider wrote a prescription, the complaint said.
Cancellation was deliberately difficult, regulators alleged, with the option buried behind an "Add/remove items from order" button that never used the word "cancel." The company also processed refill charges 10 days earlier than customers would reasonably expect, requiring cancellation two days before that early processing date — a window consumers frequently missed.
Hims & Hers called the lawsuit "baseless" in a post on X, saying the FTC ignored evidence provided during a nearly three-year investigation. "This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense," the company said.
The case represents the FTC's most aggressive action against a telehealth company on data privacy grounds. The agency has broadened its enforcement under the Health Breach Notification Rule, which treats unauthorized disclosures of health data as a breach subject to civil penalties. If the FTC prevails, Hims & Hers could face injunctive relief requiring changes to its data-sharing practices and billing systems, as well as monetary penalties that the agency has not yet specified.
The outcome could reshape operating standards across the telehealth industry, where data-sharing with advertising platforms has been a common but opaque practice. Telehealth competitors including Ro and Lemonaid Health now face increased scrutiny over their own data-handling and billing practices, according to regulatory analysts.
This article is for informational purposes only and does not constitute investment advice.
