Hims & Hers Sued by FTC, Utah in Federal Court

The Federal Trade Commission, Utah and Los Angeles County sued Hims & Hers Health Inc. Wednesday for allegedly misleading consumers about its products and sharing their private health information with Meta Platforms Inc. and Snap Inc.

Hims shares extended losses to drop as much as 16% after the suit was filed, the most intraday since May 12.

In a lawsuit filed in California federal court, the agency said Hims failed to disclose to consumers that they were purchasing a subscription, made it too difficult to cancel and mislead them about the privacy of their information by sharing it with the social networks for advertising purposes. The FTC said those business practices violate federal consumer protection laws, while Utah and LA alleged violations of state laws.

The FTC had been investigating Hims’ business practices, including its cancellation policies, for more than a year, Bloomberg previously reported. The company said at the time it was voluntarily cooperating with the probe.

The telehealth company has about 2.6 million subscribers who pay a monthly fee for access to doctors able to prescribe medications for common conditions like obesity, hair loss and erectile dysfunction. However, some customers have said that Hims makes it unnecessarily difficult to cancel their subscriptions and that the company continues to charge their credit cards after cancellation, according to social media posts and complaints filed with the nonprofit Better Business Bureau.

A spokesperson for the company didn’t immediately respond to a request for comment. The FTC didn’t have an immediate comment.

Top photo: The Hers app arranged on a smartphone in New York, on Wednesday, Feb. 12, 2025. A Super Bowl ad touting Hims & Hers Health Inc.’s copycat weight-loss drugs is getting pushback from the branded drugmakers lobbying group, which says it’s “misleading” and potentially violates marketing rules. Bloomberg.