Hims & Hers Faces Widening FTC Lawsuit as Five States Join Privacy Case

Arizona, Florida, Nebraska, Ohio and Wisconsin have been added as plaintiffs in an amended complaint filed in the U.S. District Court for the Northern District of California, according to an FTC announcement. The expansion brings additional state consumer protection claims into a case that already involved federal regulators, Utah and California through Los Angeles County.

The lawsuit alleges that Hims & Hers provided sensitive medical information to third-party advertising platforms, including Meta Platforms Inc. and Snap Inc., despite assuring customers that their personal health details would remain private.

Regulators contend that the company’s handling of patient information contradicted its marketing claims about confidentiality and security. The allegations raise questions about how digital healthcare providers use consumer data for advertising while offering services involving sensitive medical conditions.

According to the FTC’s amended complaint, information allegedly shared with advertising platforms included details concerning consumers seeking treatment for erectile dysfunction and mental health conditions. The agency alleges that the disclosures were part of efforts to expand the company’s business and advertising reach.

Billing and Subscription Practices Under Scrutiny

Beyond the privacy allegations, the FTC is challenging how Hims & Hers charges customers for prescription medications and manages subscription cancellations.

Regulators allege that consumers can be charged for prescription products shortly after completing an online medical questionnaire, before consulting a healthcare professional.

The FTC argues that this practice may mislead customers who expect a medical consultation to determine an appropriate treatment before payment is collected.

The complaint also accuses the company of creating obstacles for consumers attempting to cancel recurring subscriptions, potentially leaving customers responsible for charges they sought to discontinue.

The expanded legal action alleges violations of the FTC Act, the Restore Online Shoppers’ Confidence Act and consumer protection statutes in the participating states, according to the federal agency.

Company Rejects Allegations

Hims & Hers has disputed the government’s accusations and indicated that it intends to contest the expanded lawsuit.

A company spokesperson said Hims & Hers would defend itself against the additional claims, describing them as based on allegations the company already considers unfounded, according to Reuters reporting published Nov. 10.

The San Francisco-based company operates a digital healthcare platform offering treatments for weight management, hair loss, sexual health and mental health conditions. Its business model combines online medical consultations with prescription fulfillment and recurring customer subscriptions.

The legal developments come as Hims & Hers navigates financial pressures associated with changes to its weight-loss business.

The company recently lowered its full-year core profit forecast as costs related to its transition toward branded weight-loss medications and international expansion weighed on margins, Reuters reported.

Broader Implications for Digital Healthcare

The addition of five states increases the scope of the regulatory challenge facing Hims & Hers and introduces further claims under state consumer protection laws.

The case highlights the regulatory risks confronting telehealth businesses that collect personal medical information while relying on digital marketing and subscription-based revenue.

For Hims & Hers, the dispute centers on whether its representations about patient confidentiality, payment timing and subscription management accurately reflected its business practices.