Five US states have joined the Federal Trade Commission in a lawsuit that alleges telehealth company Hims & Hers Health engaged in deceptive and unlawful privacy practices, the FTC said on Oct. 10.
The lawsuit alleges the company shared consumers’ sensitive health information with third-party advertising platforms including Meta Platforms and Snap, despite claiming its services maintain consumers’ privacy.
The case also contends Hims & Hers deceives users about its billing and cancellation practices, according to the FTC.
The amended complaint filed in the US District Court for the Northern District of California now includes Arizona, Florida, Nebraska, Ohio and Wisconsin and alleges violations of the states’ consumer protection laws in addition to federal laws, the FTC said in a statement.
Los Angeles County and Utah joined the action when the FTC initiated it in July.
Hims & Hers is one of the largest telehealth players in the market for weight-loss drugs. It also treats erectile dysfunction, hair loss and mental health conditions, shipping prescriptions directly to customers.
“We will vigorously defend ourselves against these follow-on claims, which rely on the same flawed allegations advanced in the government’s lawsuit,” a Hims & Hers spokesperson said.
The FTC alleged Hims & Hers charges users for prescription drugs before they meet with healthcare providers and makes it difficult to cancel subscriptions.
The company cut its full-year core profit forecast on Monday as higher costs tied to a pivot to branded weight-loss drugs and international expansion pressured margins.
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