The Federal Trade Commission has filed a lawsuit against telehealth company Hims & Hers, accusing the healthcare provider of illegally sharing customers’ sensitive medical information with major technology and advertising companies while misleading users about its privacy practices.
The lawsuit, filed in federal court in California alongside Los Angeles County and the state of Utah, also alleges the company engaged in deceptive billing practices and made it difficult for customers to cancel subscriptions.
Hims & Hers denied the allegations, calling the case “baseless” and saying it intends to vigorously defend itself.
FTC Alleges Health Data Was Shared With Advertisers
According to the complaint, Hims & Hers The FTC alleges those trackers collected and shared sensitive patient information with third-party advertising platforms, despite the company’s promises that customers’ health data would remain private.
The agency said the trackers captured users’ health-related information and website activity, including clicks and other actions taken while using Hims & Hers’ online platform.
Hims & Hers provides telehealth consultations and prescriptions for conditions including erectile dysfunction, hair loss, mental health disorders and weight loss, giving the company access to a significant amount of sensitive medical information.
Company Accused of Misleading Customers
Federal regulators claim Hims & Hers’ privacy policy led consumers to believe their medical information would remain confidential while the company was allegedly sharing data with advertising platforms.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said the agency would continue pursuing companies that deprive consumers of control over their personal information.
“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,” Mufarrige said in a statement, Reuters reported.
Billing and Subscription Practices Also Challenged
In addition to its privacy allegations, the FTC claims Hims & Hers charged some customers for prescription medications before they had an opportunity to meet with a healthcare provider.
According to the agency, many users were billed shortly after completing an online intake questionnaire rather than after receiving a medical consultation.
The lawsuit also alleges the company violated federal consumer protection laws by making it unnecessarily difficult for customers to cancel recurring subscriptions.
Hims & Hers Rejects Allegations
Hims & Hers said it disagrees with the FTC’s claims and maintains that its privacy policy clearly explains how customer data may be used.
In a statement, the company said users are given choices regarding their information and called the lawsuit an attempt to generate publicity rather than protect consumers.
“This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense,” the company said.
Following news of the lawsuit, shares of Hims & Hers fell roughly 12% during trading Wednesday.
Part of Broader FTC Crackdown
The lawsuit is the latest in a series of enforcement actions targeting healthcare and telehealth companies over the handling of sensitive patient information.
The FTC is seeking to stop the alleged practices and hold Hims & Hers accountable for what it describes as violations of federal consumer protection laws.
Provided by Dallas Express
