Major telehealth giant Hims & Hers is the latest target of a Federal Trade Commission (FTC) crackdown on consumer data privacy, following a years-long investigation into whether or not the company was selling sensitive customer health data.
In a new filing issued July 29 by the agency, joined by the states of Utah and California, the federal watchdog has formally accused the direct-to-consumer health company of sharing patient information with advertisers and tech giants like Meta and Snap. The FTC claims Hims & Hers provided the companies with lists of customer names, as well as information on their site behavior, despite pledging to protect customer data privacy. Such disclosures violate FTC Act and the Restore Online Shoppers’ Confidence Act, the FTC argues.
The lawsuit also alleges the platform “deceives users about its billing and cancellation practices,” including making it difficult to cancel subscriptions and mischaracterizing the process for prescription charges for new patients. Specifically, the FTC claims the company misleads users into believing they will not be charged for prescriptions before consulting with a physician. In practice, the lawsuit claims, many customers are asked to provide billing information and charged for prescription plans shortly after filling out intake forms, and without first reviewing the medications.
In 2024, the FTC instituted new “Click to Cancel” rules mandating sellers utilize simple cancellation processes that allow customers to terminate charges in just one click. Many companies, primarily telecom giants, pushed back on Click to Cancel mandates, citing concerns that the agency was overextending its powers. The FTC was forced to vacate the ruling by a U.S. Appeals Court last year.
Hims & Hers has faced scrutiny from lawmakers and major pharmaceutical companies. The platform faced threats of a lawsuit following what some alleged were misleading claims made in a 2025 Super Bowl ad criticizing the profit motivations of GLP-1 manufacturers. It has also been accused of running a gray market for weight loss medications using non-FDA approved manufacturing processes. The company itself has staked billions in the sale of weight loss products marketed as affordable, direct-to-consumer alternatives to mainstream GLP-1 medications.
In a press release responding to the lawsuit, Hims & Hers argued the FTC was disregarding evidence unearthed during its investigation and ignoring existing state laws and industry standards to specifically target the San Francisco-based company. “This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense,” the company wrote.
Source: https://mashable.com/tech/hims-hers-customer-data-privacy-ftc-lawsuit
