News - FTC Accuses Hims & Hers of Misusing Customer Data in Lawsuit

In a significant move by the Federal Trade Commission (FTC), telehealth platform Hims & Hers is under scrutiny for allegedly mismanaging consumer data and engaging in misleading billing practices. This legal action, supported by the states of Utah and California, centers around accusations that the company shared sensitive customer health information with major advertisers including Meta and Snap, despite public assurances of data privacy. The complaint highlights potential violations of the FTC Act and the Restore Online Shoppers’ Confidence Act, citing instances where customer names and site usage were handed over to third parties. Additionally, the lawsuit challenges the company over its subscription and prescription billing strategies, which purportedly involve charging users upfront before physician consultations, complicating the cancellation process. The FTC’s "Click to Cancel" rule, which demands straightforward subscription termination options, is a focal point, with the court previously overturning this rule after pushback from large corporates. This lawsuit also revives past controversies for Hims & Hers, including allegations of misleading advertising during high-profile events and accusations concerning the sale of unapproved weight loss drugs. Hims & Hers maintains its stance, claiming the FTC’s actions are unfounded and aimed at generating media attention unfairly at their expense.