The Federal Trade Commission filed a lawsuit Wednesday against Hims & Hers, accusing the telehealth company of sharing customers’ health-related information with outside platforms, including Meta and Snap, without obtaining their consent.
The case, brought in federal court in the Northern District of California, claims Hims & Hers passed along sensitive user data even as it assured customers that their privacy would be protected.
“Hims was only able to create audiences with such specificity because it flouted the promises it made to its users about treating their medical conditions ‘privately’ or keeping their health information private,” the FTC said.
Founded in 2017 and now publicly traded, Hims & Hers connects patients with health care providers online and offers access to prescription medications for sexual wellness, weight loss and other conditions. Shares of the company dropped nearly 15% on Wednesday following the FTC’s action.
Hims & Hers rejected the claims about its data practices, calling the allegations “baseless” and saying it intends to fight the lawsuit in court.
“Our customers have the information they need to make informed decisions about their care and the use of our services,” the San Francisco-based company said in a statement posted on social media. “And our Privacy Policy makes clear that they may choose how their data is used, and that information patients share with their healthcare providers is used only in providing care.”
According to the FTC, Hims & Hers disclosed user information through tracking tools “offered by Meta” that follow visitors’ activity on its website, and also by providing lists of certain customers to third parties. The agency said the company shared information with other advertising platforms as well.
The FTC’s complaint also alleges that Hims & Hers did not clearly inform consumers when they would be charged for prescriptions bought through the platform and created obstacles for users trying to cancel subscriptions.
“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.
Alain Sherter
