RESOLVING THE LEDGER
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The FTC, joined by Los Angeles County and Utah, alleged Hims & Hers shared users' sensitive health information with online advertising platforms including Meta Platforms and Snap Inc. through tracking technologies embedded on its website. The agency said the company's practices were inconsistent with promises it made to protect users' health data.
The FTC also accused Hims & Hers of charging customers for prescriptions before they have spoken with a healthcare provider. The agency alleges many customers are billed after completing an intake form rather than after a consultation with a medical professional.
The regulator further alleges the company made it difficult for users to cancel subscriptions.
Hims & Hers denied the allegation in a post on X , saying the lawsuit "disregards substantial evidence" provided during the FTC's nearly three-year investigation into the company and "contorts the law to try to manufacture claims."
The company said it is confident in its position and will "vigorously defend" itself.
The lawsuit comes as Hims & Hers has emerged as one of the largest telehealth providers in the fast-growing market for weight loss medications. The company offers virtual appointments and prescriptions for treatments including weight loss drugs, erectile dysfunction, hair loss and mental health medications, which are shipped directly to consumers.
The investigation by the FTC dates back to October 2023. CNBC has reported on several probes into Hims & Hers' business practices, including its Super Bowl ad and compounded weight loss drugs .
In April, the FTC formally communicated the findings of its probe started in 2023 to the company and settlement discussions began. In May, Hims & Hers disclosed a $15 million probable-loss accrual related to the matter, warning the final cost could be materially higher. The company said it made a settlement offer without admitting wrongdoing.
Wednesday's lawsuit escalates that dispute, with regulators pushing new claims.
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