FTC Sues Hims & Hers Over Health Data and Billing Practices
The FTC filed suit against Hims & Hers, alleging improper health data sharing with Meta and Snap and deceptive billing practices.
The Federal Trade Commission sued telehealth company Hims & Hers on allegations that the firm improperly shared sensitive health data with social media giants Meta and Snap, while also engaging in deceptive billing and subscription cancellation practices, sending the company's shares tumbling roughly 10% on the news.
The lawsuit marks a significant regulatory escalation targeting the direct-to-consumer telehealth sector, where companies routinely collect highly personal medical information from patients seeking treatment for conditions ranging from hair loss to sexual health. The FTC's action signals growing agency scrutiny over how such firms handle the sensitive data they accumulate.
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Beyond the data-sharing allegations, regulators took aim at the company's billing conduct and the barriers it allegedly erected to prevent customers from canceling subscriptions — a practice the FTC has aggressively pursued across multiple industries in recent years under its so-called "click-to-cancel" enforcement push.
The sharp single-day drop in Hims & Hers stock reflects investor concern over the financial and reputational risks that accompany a federal consumer protection lawsuit. Depending on the outcome, the company could face significant fines, mandatory changes to its data practices, and tighter oversight of its subscription model going forward.
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