The Hims & Hers lawsuit has put the telehealth provider under scrutiny after the FTC, along with Utah and California authorities, accused the company of deceptive billing practices and unlawfully sharing consumers' sensitive health information with third-party advertising platforms. According to a complaint filed in federal court, regulators allege that Hims & Hers misled consumers about its privacy protections, enrolled users in recurring subscriptions without clear disclosure, and shared health-related data with companies including Meta and Snap.

The complaint alleges that the San Francisco-based telehealth provider failed to clearly inform consumers that prescription charges could be processed almost immediately after they submitted an online intake form, despite representing that they would first consult with a medical provider to determine an appropriate treatment.

FTC Complaint Alleges Deceptive Billing Practices

According to the FTC complaint, consumers interested in Hims & Hers services are required to complete an online intake form for review by a medical provider before receiving prescription treatment. During this process, users provide billing information after being assured they would not be charged unless medication was prescribed.

However, regulators allege that most consumers were not given a consultation with a provider before being charged. Instead, the complaint states that submitting the intake form automatically enrolled many users in recurring prescription subscriptions and processed charges before consumers had an opportunity to review or approve the treatment.

The complaint also alleges that Hims & Hers did not clearly disclose when prescription refills would occur, making it difficult for consumers to cancel subscriptions before the next billing cycle.

One consumer complaint cited by the FTC stated that they were told they would speak with a doctor within a few days and would not be charged immediately, but their payment was processed before any consultation took place.

Hims & Hers Lawsuit: Privacy Practices Under Investigation

The Hims & Hers lawsuit also centers on allegations involving health data privacy.

According to the complaint, Hims & Hers shared consumers' sensitive health information with advertising platforms such as Meta and Snap, despite assuring users that their medical information would remain private.

The FTC alleges that the company shared customer lists with advertising platforms and also used third-party tracking technologies that automatically transmitted website activity, referred to as "Events," to those companies.

Regulators argue that these practices exposed health-related information while contradicting the company's privacy representations to consumers.

Subscription Cancellation Process Questioned

The complaint further alleges that Hims & Hers created obstacles for consumers attempting to cancel recurring subscriptions.

Before 2023, most users could only cancel by contacting customer service through phone, email, or chat. Even after introducing online cancellation, regulators allege the company continued to make the process difficult by hiding the cancellation option behind multiple navigation steps. According to the complaint, consumers first had to select "add/remove items from order" before eventually reaching the cancellation page.

The FTC alleges these practices violate both the FTC Act and the Restore Online Shoppers' Confidence Act, which governs deceptive billing and subscription practices. Utah and California have also alleged violations under their respective consumer protection laws.

Hims & Hers Rejects Allegations

In a statement posted on X, Hims & Hers rejected the allegations and said the lawsuit ignores evidence provided during the FTC's nearly three-year investigation.

The company described the action as an attempt to generate headlines rather than enforce consumer protection laws and said it intends to defend itself in court vigorously.

Hims & Hers also stated that millions of consumers have relied on its services since 2017 and that its Privacy Policy explains how customer data is used. The company added that patients can choose how their information is handled and maintained that information shared with healthcare providers is used only to deliver care.

The lawsuit was authorized by a 2-0 vote of the Commission and filed in the U.S. District Court for the Northern District of California. The allegations remain claims made by regulators, and the court will ultimately decide the case.