On Wednesday, the Federal Trade Commission (FTC) launched a lawsuit against Hims & Hers, accusing the telehealth company of improperly sharing customers’ sensitive health information with third-party entities, including Meta and Snap, without obtaining their consent.
The lawsuit, filed in the federal court of California’s Northern District, claims that Hims & Hers violated consumer trust by mishandling personal data despite assuring users of safeguarding their privacy.
The FTC stated that “Hims was able to target specific audiences due to its disregard for the privacy promises it made to users, around both treating medical conditions confidentially and maintaining the privacy of their health information.”
Established in 2017 and publicly traded, Hims & Hers provides a platform for users to virtually engage with healthcare professionals and access prescriptions for issues like sexual health and weight management. Following the announcement of the lawsuit, the company’s stock took a nosedive, dropping close to 15% on Wednesday.
In response, Hims & Hers rejected the accusations as “baseless” and expressed its determination to contest the claims vigorously in court.
“Our customers have the information they need to make informed decisions about their care and the use of our services,” the San Francisco-based company said in a statement on social media. “And our Privacy Policy makes clear that they may choose how their data is used, and that information patients share with their healthcare providers is used only in providing care.”
The FTC alleged that Hims & Hers disclosed user information through tracking technologies “offered by Meta” that monitor people’s actions on its website and by sharing lists of some customers with third parties. The health service also shared information with other advertising platforms, according to the consumer protection agency.
The FTC also accused Hims & Hers of failing to clearly disclose when consumers are charged for prescriptions purchased through the service and making it difficult for users to cancel subscriptions.
“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,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.
Alain Sherter