EXCLUSIVE: US FTC sues Hims & Hers for sending user healt…

The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Hims & Hers Health Inc., alleging that the telehealth service improperly shared users' health information with advertisers such as Meta Platforms and Snap Inc. The lawsuit claims that Hims & Hers deceived customers by assuring them of data privacy while engaging in questionable billing and subscription cancellation practices. Many users reportedly did not receive proper consultations before being charged for prescriptions. Hims & Hers disputes the allegations, calling them baseless and an attempt to generate negative attention.

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The New York Stock Exchange with a Hims & Hers Health, Inc banner is pictured as a person runs past in the Manhattan borough of New York City, New York, U.S., January 21, 2021. REUTERS/Carlo Allegri/File Photo Purchase Licensing Rights, opens new tab

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July 29 (Reuters) - The U.S. Federal Trade Commission sued, opens new tab Hims & Hers (HIMS.N), opens new tab on Wednesday alleging the telehealth platform shared users' health ‌data with online advertisers, despite promising privacy, and engaged in deceptive billing and cancellation practices.

Users' sensitive health information was shared with online advertising companies including Meta Platforms (META.O), opens new tab and Snap (SNAP.N), opens new tab despite the company leading customers to believe their data was private, the FTC alleged in the lawsuit filed along with Los ⁠Angeles County and Utah.

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Hims & Hers stock added to losses after the news and was trading down around 12%.

Hims & Hers is one of the largest telehealth players in the market for weight loss drugs. The company offers telehealth appointments and prescriptions for erectile dysfunction, hair loss, and mental health medications, which it ships straight to customers.

"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.

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Hims & Hers called the claims baseless in a post on social media site X. "This is not enforcement grounded ⁠in consumer protection; it is an effort to generate headlines at our expense," the company said in the post.

Hims & Hers also started charging users for prescriptions before they have ⁠had a chance to meet with healthcare providers, the FTC alleged.

Most customers do not receive a consultation with a provider, and instead are charged for ⁠prescriptions soon after filling out an intake form, according to the agency.

Hims & Hers also makes it difficult to cancel subscriptions, the FTC said.

Reporting by Jody Godoy in New York; Editing by Chizu Nomiyama and Chris Sanders

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Jody Godoy

Thomson Reuters

Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at jody.godoy@thomsonreuters.com