FTC Sues Hims & Hers Over Data Sharing and Billing Practices
Shares of telehealth company Hims & Hers Health fell by approximately 10% after the Federal Trade Commission (FTC) filed a lawsuit against it. The FTC, alongside Los Angeles County and Utah, accused the firm of sharing users' sensitive health data with advertisers like Meta and Snap without proper consent through tracking technologies on its website. Additionally, regulators alleged that Hims & Hers billed customers for prescriptions before they consulted healthcare providers and made subscription cancellations difficult. Hims & Hers denied wrongdoing in a public statement, claiming the lawsuit is unsupported after an extensive three-year investigation by the FTC. The company expressed confidence in defending itself against these allegations. This legal action follows ongoing scrutiny of Hims & Hers' business practices, including its marketing strategies and drug offerings. In May 2024, the firm had already set aside $15 million for a potential settlement related to this matter. The lawsuit marks an escalation in regulatory pressure on one of the largest telehealth providers offering virtual prescriptions for weight loss drugs, erectile dysfunction treatments, hair loss solutions, and mental health medications.
Topics: billing practices consumer protection data privacy telehealth