FTC Sues Hims & Hers Over Health Data Sharing
Synopsis
U.S. regulators accused the telehealth company of sharing sensitive user health information with Meta and Snap despite privacy promises.
Key Highlights
- The US Federal Trade Commission has sued Hims & Hers over Privacy and Billing Violations.
- The agency says the telehealth firm shared users’ health data with Meta and Snap while promising privacy.
- Hims & Hers has claimed the lawsuit is frivolous and has no basis.
The U.S. Federal Trade Commission (FTC) has sued Hims & Hers, an online telehealth startup, for allegedly sharing sensitive health information about users with internet-based advertising platforms even though the company told customers their data would be kept private.
The lawsuit, jointly filed with Los Angeles County and the state of Utah, asserts that the company shared users’ health data with ad firms such as Meta Platforms Inc. and Snap Inc., according to a separate press release.
Privacy and Billing Allegations
According to the FTC, while disclosing sensitive information about their customers with advertisers, Hims & Hers has misled consumers into believing their personal health data was kept private. The agency also charges the company with deceptive billing and cancellation practices.
Hims & Hers allegedly billed customers for prescriptions before they could promptly consult with a health care provider, the FTC says. The regulator said many customers did not receive a consultation, but were instead charged shortly after submitting an online intake form.
Company Rejects Claims
After the lawsuit, Hims & Hers fell nearly 12% in a sell-off. The company, one of the biggest online telehealth players for weight-loss drugs, also allows patients to receive online consultations and prescriptions for erectile dysfunction, hair loss and mental health services.
In announcing the settlements, FTC Bureau of Consumer Protection Director Christopher Mufarrige said the agency would use its authority to protect American consumers’ ability to keep their protected health information private and make informed purchasing decisions.
In a statement posted to X, Hims & Hers called the allegations “baseless” and accused the lawsuit of being about securing headlines rather than protecting consumers.
Source: Reuters
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