The FTC alleged in its lawsuit, filed alongside Los Angeles County and Utah, that users’ sensitive health information was disclosed to online advertising firms, including Meta Platforms and Snap, despite the company leading customers to believe their data remained confidential.
Following the announcement, Hims & Hers stock fell further, trading down by approximately 12%.
Hims & Hers stands as a significant player in the telehealth market for weight loss medications. The firm offers telehealth consultations and prescriptions for issues like erectile dysfunction, hair loss, and mental health, which are delivered directly to consumers.
“The FTC will actively protect consumers who have been deprived of their right to choose which products they wish to use and to keep their most sensitive health information confidential,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated.
In a post on the social media platform X, Hims & Hers dismissed the allegations as unfounded. “This is not enforcement based on consumer protection; it is an attempt to create headlines at our cost,” the company wrote.
The FTC also claimed that Hims & Hers began charging users for prescriptions before they had the opportunity to consult with healthcare providers.
According to the agency, most customers do not have a consultation with a provider and are charged for prescriptions shortly after completing an intake form.
Furthermore, the FTC indicated that Hims & Hers complicates the process for canceling subscriptions.
