The FTC alleges that Hims & Hers shared consumers’ sensitive health information, including medical conditions, with third-party advertising platforms, despite claiming that its services maintain consumers’ privacy. The case was joined by officials in Utah and Los Angeles County.
In a complaint filed in federal court, the FTC and its state and local partners allege that Hims & Hers fails to clearly disclose that it charges consumers for prescriptions almost immediately after they submit an intake form, despite telling consumers that they will be able to consult with a medical provider to find a treatment that is “right for them.” The FTC also alleges that the company has made it difficult for consumers to cancel subscriptions and misled consumers about keeping their health information private.Â
The FTC also alleges that Hims shared consumers’ health information with Meta, Snap and other third parties by sharing lists of certain customers with those companies. Hims also shared consumers’ health information via third-party tracking technologies that automatically shared certain “Events”—the actions of visitors on Hims’ website—with those companies, the FTC said in the complaint.
Hims stock dropped 14% as of Wednesday.
Hims & Hers operates a multi-specialty telehealth platform that connects patients with licensed healthcare providers for personalized, direct-to-consumer medical treatment for conditions such as hair loss, sexual health, dermatology, mental health and weight management. The company's business has boomed in the last few years due to rapid growth of its telehealth service for GLP-1 prescriptions. Hims & Hers initially built its massive weight loss business on compounded GLP-1 medications, but the company's weight loss business shifted dramatically this year as it scales back compounded GLP-1 drugs and pivots to branded drugs.
“The FTC’s complaint lays out a troubling scenario—consumers unknowingly locked into recurring subscriptions and the disclosure to third parties of consumers’ most private health information without their consent,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in a statement. “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.”
In advertisements and on its website, Hims has claimed that consumers can “connect” and consult with a medical provider through Hims to determine whether they need prescription medication, the FTC alleges in the lawsuit. Consumers are asked to provide billing information when they fill out their intake form, despite assurances that they will not be charged unless and until medications are prescribed, the FTC said in the lawsuit.
The FTC alleges, however, that Hims does not give most consumers a consultation with a provider. Most consumers are unknowingly charged and subscribed to a prescription treatment without having a chance to review or approve it, the FTC claims. The FTC accuses Hims of enrolling consumers in recurring subscription plans for those treatments shortly after receiving consumers’ intake forms.
The FTC also argued that Hims made it difficult for customers to cancel subscriptions by requiring multiple steps and obscuring cancellation options.
According to the complaint, Hims violated the FTC Act and the Restore Online Shoppers’ Confidence Act, which prohibits deceptive billing and subscription practices. Utah alleges violations of the Utah Consumer Sales Practices Act, and California alleges violations of California’s False Advertising and Unfair Competition Laws.
In a statement, Hims & Hers executives said, "We are confident in our position and will vigorously defend ourselves against these baseless claims."
"This lawsuit disregards substantial evidence we provided the FTC during its nearly three-year investigation, ignores established state laws and industry standards in telehealth, and contorts the law to try to manufacture claims. This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense," Hims & Hers said in the statement.
The company says it has long shared the FTC's goal of creating "a more competitive, innovative, affordable, and higher-quality healthcare system."
"Our customers have the information they need to make informed decisions about their care and the use of our services. And our Privacy Policy makes clear that they may choose how their data is used, and that information patients share with their healthcare providers is used only in providing care. The trust our customers place in us is the foundation of our business, and we have continued to strengthen our processes and systems as we have grown," Hims & Hers said.