The Federal Trade Commission, joined by California and Utah, has sued telehealth provider Hims & Hers Inc., alleging the company promised consumers a private, discreet healthcare experience while sharing sensitive health information with advertising platforms including Meta and Snap.
The complaint, filed Tuesday in the U.S. District Court for the Northern District of California, alleges Hims told consumers its services were "100% online, private, and secure" and that medical records and sensitive health information would only be accessed by healthcare providers managing their care. Regulators allege the company instead disclosed consumers' health information to third-party advertising platforms without clearly informing users.
“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,” Director of the FTC’s Bureau of Consumer Protection, Christopher Mufarrige said in a statement. “The FTC will not hesitate to act on behalf of consumers deprived of their ability to choose which products they want and whether to keep their most sensitive health information private.”
According to the complaint, Hims used Meta Pixel, Meta Conversions API, and other tracking technologies from Google, Microsoft, Reddit, TikTok, Pinterest, X and other advertising partners to transmit information about users' activity on its platforms.
Hims & Hers, a publicly traded company, provides prescription meds for various conditions but is perhaps best known for its “sexual wellness” line. The FTC says the company’s practices affected consumers seeking treatment for conditions including erectile dysfunction, premature ejaculation, mental health disorders, hair loss and weight loss. The complaint alleges Hims promoted privacy throughout its website, television, radio and podcast advertising, as well as influencer campaigns describing its services as "private" and "discreet."
“As with the Meta and Snap pixels, many of these pixels captured and shared Users’ health information by way of similar pixel tracking events that captured [redacted]—all of which was contrary to Hims’ privacy promises,” the complaint said.
The lawsuit also accuses Hims and Hers Inc. of deceptive subscription practices.
According to the complaint, the company advertised "free consultations" and told consumers they could decide whether a treatment was right for them before purchasing medication. Regulators allege many consumers were instead automatically charged and enrolled in recurring prescription subscriptions immediately after a provider reviewed their intake form, without an opportunity to review or approve the treatment. The lawsuit also alleges Hims failed to clearly disclose refill dates and made subscriptions difficult to cancel by hiding cancellation options behind multiple menus and retention screens.
The lawsuit alleges violations of the FTC Act, the Restore Online Shoppers' Confidence Act, California's False Advertising Law and Unfair Competition Law, and Utah's Consumer Sales Practices Act. The FTC and its state partners are seeking a permanent injunction, monetary relief, civil penalties, and other relief.
“The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest,” the FTC wrote. “The case will be decided by the court.”
Hims & Hers did not immediately respond to a request for comment by Decrypt.
The lawsuit is the latest in a series of FTC actions targeting companies over privacy, deceptive marketing, and consumer protection.
In 2022, Epic Games agreed to pay $520 million to settle allegations that it violated children's privacy laws. The agency has also increasingly focused on artificial intelligence, warning that AI could "turbocharge" scams and deceptive practices, while bringing enforcement actions against companies accused of exaggerating their AI capabilities.
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 that could target ads by listening to consumers' conversations through smart devices.
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