The Federal Trade Commission, alongside Los Angeles County and Utah authorities, filed a lawsuit against Hims and Hers Health on Wednesday, alleging multiple violations of consumer protection laws. The company’s stock price declined 10% following the announcement of the legal action.
Regulators contend that Hims and Hers disclosed users’ sensitive health information to online advertising platforms, including Meta Platforms and Snap Inc., through tracking technologies embedded on its website. According to the FTC, these practices contradicted the company’s public commitments regarding the protection of health data. Additionally, the agency accused the company of charging customers for prescriptions before they completed consultations with healthcare providers, with many customers reportedly being billed after submitting intake forms rather than after speaking with medical professionals. The FTC also alleged that the company created barriers to subscription cancellation.
Hims and Hers responded to the lawsuit through a post on X, stating that the legal action “disregards substantial evidence” from the FTC’s investigation spanning nearly three years and “contorts the law to try to manufacture claims.” The company expressed confidence in its legal position and stated it would “vigorously defend” itself against the allegations.
The FTC investigation of Hims and Hers began in October 2023. In April, regulators formally communicated their investigative findings, after which settlement discussions commenced. The following month, Hims and Hers disclosed a $15 million probable-loss accrual related to the matter while cautioning that final costs could exceed that amount. The company indicated it had made a settlement offer without admitting wrongdoing. The Wednesday lawsuit represents an escalation of the dispute, with authorities introducing additional claims beyond earlier discussions.
Hims and Hers operates as a major telehealth provider in the expanding market for weight loss medications, offering virtual appointments and direct-to-consumer prescriptions for treatments ranging from weight loss drugs to erectile dysfunction, hair loss, and mental health medications.
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