FTC sues Hims & Hers over alleged health data sharing with Meta, Snap

The Federal Trade Commission on Wednesday sued Hims & Hers, alleging the telehealth company shared users’ health data with Meta, Snap and other third parties.

The lawsuit was filed in U.S. District Court for the Northern District of California by the FTC and joined by the states of California and Utah. The complaint alleges that Hims & Hers shared sensitive health information about medical conditions with third-party advertising platforms, even though the company claimed that its services maintained consumers’ privacy.

The complaint also alleges that Hims & Hers deceived customers about its billing and cancellation practices.

In a news release, the FTC said that Hims & Hers “fails to clearly disclose” that it charges customers for prescriptions almost immediately after filing an intake form. The complaint states that the company did this despite telling customers that they would be able to speak with a medical provider to find a treatment that is “right for them.”

The FTC also alleges that Hims & Hers made it difficult for customers to cancel subscriptions and misled them about keeping their health information private.

According to Reuters, Hims & Hers, based in San Francisco and formed in 2017, is one of ​the market’s largest telehealth companies for weight loss drugs. The company offers telehealth appointments and prescriptions for conditions such as hair loss, erectile dysfunction and mental health medications.

Hims & Hers also has a heavy advertising presence on social media, according to The Washington Post. It became a force in the market by selling compounded versions of weight-loss drugs, the newspaper reported. It has since shifted to the branded drugs such as Wegovy, Zepbound and Foundayo.

“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,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said 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 a response posted on X, Hims & Hers said the FTC “disregarded substantial evidence” that the company had provided during the agency’s three-year investigation and “ignored” telehealth industry standards. The company said its privacy policy allows patients to choose how their data is used.

“This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense,” the company said.

In April, the FTC formally communicated the findings of a probe it began in 2023 to the company and settlement discussions began, CNBC reported. The company said it made a settlement offer without admitting wrongdoing, according to the news outlet.

Wednesday’s filing escalates that dispute, according to CNBC.

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