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FTC, California, and Utah Sue Hims & Hers Over Health Data and Billing Practices

Published
Score
21

Why it matters

The Federal Trade Commission, joined by California and Utah, has sued telehealth company Hims & Hers Health, Inc. in U.S. District Court for the Northern District of California, alleging that the company shared sensitive health data with advertising platforms including Meta and Snap while marketing itself as private and discreet. The complaint also charges Hims with deceptive subscription practices, including charging customers immediately after intake forms were submitted—before any medical consultation occurred—and making cancellation unreasonably difficult. The FTC alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act, while California invokes its False Advertising and Unfair Competition Laws and Utah cites its Consumer Sales Practices Act.

Hims has disputed the allegations, stating that the FTC disregarded evidence from its three-year investigation and signaling it will mount a defense. The specific details of how customer data was transmitted to ad platforms and the scope of information shared remain subject to further disclosure in litigation.

This multi-state enforcement action targets two overlapping regulatory concerns: health-data privacy and subscription dark patterns. For attorneys advising digital health companies, the case signals intensifying scrutiny of business models that monetize user medical data while offering consumer-facing health services. Practitioners should review how clients handle health information under HIPAA, state privacy laws, and FTC standards—particularly any data sharing with third-party platforms for advertising purposes.

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