The Federal Trade Commission (FTC), joined by California and Utah, has filed a lawsuit against telehealth provider Hims & Hers Inc., alleging the company shared sensitive consumer health data with advertising platforms without clear consent and engaged in deceptive subscription practices. The complaint was filed Tuesday in the U.S. District Court for the Northern District of California.
The FTC alleges that Hims & Hers, despite promising consumers a “100% online, private, and secure” healthcare experience, disclosed sensitive health information to third-party advertising platforms like Meta and Snap. According to the complaint, the company utilized tracking technologies such as Meta Pixel and Meta Conversions API, along with tools from Google, Microsoft, Reddit, TikTok, Pinterest, and X, to transmit user activity data, including health information, to these advertising partners. This alleged data sharing occurred without consumers’ explicit consent, contrary to the company’s privacy assurances.
Regulators also accuse Hims & Hers of deceptive subscription practices. The lawsuit claims that many consumers were automatically enrolled in recurring prescription subscriptions immediately after a provider reviewed their intake form, without an opportunity to review or approve the treatment. The company allegedly failed to clearly disclose refill dates and made it difficult for consumers to cancel their subscriptions by hiding cancellation options within multiple menus and retention screens.
The FTC’s complaint asserts violations of the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), California’s False Advertising Law and Unfair Competition Law, and Utah’s Consumer Sales Practices Act. The agency, along with its state partners, is seeking a permanent injunction, monetary relief, and civil penalties.
This lawsuit highlights ongoing scrutiny of the digital health sector regarding consumer privacy and data protection. It follows a pattern of FTC enforcement actions targeting companies over privacy and deceptive marketing. For instance, in 2022, Epic Games paid $520 million to settle allegations of violating children’s privacy laws. More recently, in May, the FTC reached a nearly $1 million settlement with Cox Media Group and two marketing firms over claims they falsely advertised an AI-powered service. The FTC has also expressed concerns that artificial intelligence could “turbocharge” scams and deceptive practices.
The outcome of the lawsuit against Hims & Hers remains uncertain, as the case will be decided by the court. It is also unclear whether Hims & Hers has responded to requests for comment.
Why This Matters
The materials describe a narrow update: The FTC, along with California and Utah, filed a lawsuit against Hims & Hers, alleging the company shared consumers’ sensitive health information with advertising platforms like Meta and Snap without clear consent, despite promising a private healthcare experience. The outcome of the lawsuit filed by the FTC and state partners against Hims & Hers.
Broader Context
Source materials place the factual news in this context: The lawsuit is the latest in a series of FTC actions targeting companies over privacy, deceptive marketing, and consumer protection.
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