The FTC accused Hims & Hers of sharing 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, raising serious questions about how telehealth companies handle patient privacy in the digital age.

The company forcefully rejected the allegations in a statement posted on X and released through a business wire service. Hims & Hers called the lawsuit baseless and accused regulators of manufacturing claims to generate headlines at the company’s expense.

“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,” the company stated.

Billing Practices Under Scrutiny

Beyond privacy concerns, the FTC 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, a practice that could violate consumer protection standards and medical ethics guidelines.

The regulator further alleges the company made it difficult for users to cancel subscriptions, adding another layer to the complaint. These subscription-related allegations mirror broader FTC concerns about digital services that make enrollment easy but cancellation cumbersome, a pattern the agency has targeted across multiple industries in recent years.

Hims & Hers defended its business practices, stating that customers have the information they need to make informed decisions about their care and the use of its services. The company emphasized that its Privacy Policy makes clear that customers may choose how their data is used, and that information patients share with their healthcare providers is used only in providing care.

Investigation Timeline and Settlement Attempts

The investigation by the FTC dates back to October 2023, marking nearly three years of regulatory scrutiny into the company’s operations. Multiple probes into Hims & Hers’ business practices have been reported, including its Super Bowl advertisement 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 shortly thereafter. In May, Hims & Hers disclosed a $15 million probable-loss accrual related to the matter, warning that the final cost could be materially higher.

The company said it made a settlement offer without admitting wrongdoing, but Wednesday’s lawsuit escalates that dispute significantly. Regulators are now pushing new claims rather than accepting the company’s proposed resolution, suggesting the two sides remain far apart on the severity of the alleged violations and appropriate remedies.

Growing Telehealth Market Under Pressure

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.

Since 2017, millions of people have relied on Hims & Hers for access to convenient and affordable care, according to the company’s statement. The firm emphasized that the trust customers place in it forms the foundation of its business, and that it has continued to strengthen its processes and systems as it has grown.

The company trades on the New York Stock Exchange under the ticker symbol HIMS and has positioned itself as a leader in normalizing health and wellness challenges while innovating on their solutions. Its business model centers on providing personalized care designed for individual results, recognizing that no two people face identical health challenges.

Regulatory Priorities and Consumer Protection

Hims & Hers stated it has long shared the goal of the FTC’s new Healthcare Task Force to create a more competitive, innovative, affordable, and higher-quality healthcare system. The company framed the lawsuit as misguided enforcement that prioritizes headlines over genuine consumer protection, arguing that established state laws and industry standards in telehealth support its practices.

The company emphasized that it provided substantial evidence to the FTC during the investigation, suggesting regulators ignored information that would have undermined their case. Hims & Hers said it remains confident in its legal position and will vigorously defend itself against what it characterized as manufactured claims designed to distort the law.

The regulatory action represents a significant test for the telehealth industry, which exploded in growth during the pandemic and continues to expand rapidly. How courts ultimately rule on the FTC’s allegations could establish precedents affecting how digital healthcare companies collect and share patient data, structure their billing processes, and manage subscription services across the sector.

The outcome of this case may influence whether other telehealth providers face similar scrutiny and potentially reshape industry practices around patient privacy and billing transparency. With millions of Americans now relying on digital healthcare services, the stakes extend beyond a single company to encompass broader questions about consumer protection in an increasingly virtual medical landscape.

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