WASHINGTON, D.C. — The Federal Trade Commission, Utah and Los Angeles County sued Hims & Hers Health Inc. in federal court, alleging the telehealth provider disclosed patients’ sensitive health information to advertising platforms while using deceptive billing and subscription practices.
The complaint alleges the San Francisco-based company shared customer information with Meta Platforms Inc., Snap Inc. and other third parties despite representing that its services protected patient privacy.
Regulators also accused Hims & Hers of charging customers for prescription treatments shortly after they submitted online medical intake forms, without clearly disclosing that the forms could trigger immediate purchases and recurring subscriptions.
The lawsuit, filed in the U.S. District Court for the Northern District of California, raises regulatory pressure on a telehealth business model that combines online medical evaluations, direct-to-consumer prescriptions and automatic renewals.
Hims & Hers requires prospective patients to complete an intake form for review by a medical provider. Its advertising and website have represented that customers can connect with a provider to determine whether prescription medication is appropriate, according to the complaint.
The FTC alleged that most customers did not receive a consultation before being charged. Instead, submitting the intake form could enroll a customer in a recurring prescription plan without providing an opportunity to review or approve the treatment, the agency alleged.
Customers were asked to provide payment information during the intake process while being led to believe they would not be charged unless medication was prescribed, according to the complaint.
One customer quoted in the filing alleged that Hims & Hers charged a payment card immediately despite indicating that no charge would occur before a consultation with a health care provider.
The regulators also alleged that Hims & Hers failed to clearly disclose monthly refill dates, limiting the time customers had to cancel before another billing cycle.
Before 2023, most customers could cancel only by contacting customer service by telephone, email or chat, according to the FTC. The company later introduced online cancellation but allegedly placed the option behind several steps, including a menu labeled “add/remove items from order.”
The complaint further alleges that Hims & Hers disclosed health information by providing advertising platforms with customer lists and using tracking technologies that automatically transmitted actions taken by visitors on its website.
The information concerned medical conditions for which customers sought treatment, according to the regulators. The complaint does not specify how many customers were affected.
The FTC accused Hims & Hers of violating the FTC Act and the Restore Online Shoppers’ Confidence Act, a federal law governing online recurring charges and cancellation practices.
Utah alleged violations of its Consumer Sales Practices Act. California, acting through the Los Angeles County Counsel, alleged violations of state false-advertising and unfair-competition laws.
“Consumers unknowingly locked into recurring subscriptions” while having sensitive health information disclosed without consent, Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated in describing the allegations.
The FTC voted 2-0 to authorize the complaint. The allegations have not been adjudicated, and the case will be decided by the court.
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