The Federal Trade Commission (FTC), joined by the States of California and Utah, has filed a lawsuit against telehealth company Hims & Hers, alleging that the company engaged in deceptive privacy, billing, and subscription practices. According to the lawsuit, Hims & Hers shared consumers’ health information with third-party advertising companies, including Meta and Snap, despite representing that the information would remain private.
The complaint also alleges that Hims & Hers charged consumers for prescription subscriptions as soon as the consumer submitted an online intake form, even though consumers were led to believe that they would not be billed before receiving a consult with a healthcare provider. It was also difficult for consumers to cancel recurring subscriptions once subscribed, because cancellation buttons were hidden on the website and required consumers to click through several options before seeing the word “cancel.” The FTC alleges that these practices were misleading and deceptive to the consumers and violated the Federal Trade Commission Act and the Restore Online Shoppers Confidence Act, as well as applicable state laws.
The lawsuit is a reminder that telehealth companies face increasing regulatory scrutiny over the use of consumer data, online tracking technologies, subscription billing models, and cancellation processes. Technology companies handling patient information should carefully review their privacy disclosures, data-sharing practices, and consumer enrollment and cancellation procedures to ensure that they align with both regulatory requirements and consumer expectations.
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