FTC sues Hims & Hers over subscription billing and health data sharing
The case targets how a large telehealth seller of weight loss and other prescriptions bills, renews and shares data, not the drugs themselves.
The Federal Trade Commission sued Hims & Hers Health on July 29, 2026, accusing the direct-to-consumer telehealth company of passing customers' health details to advertising platforms and enrolling people in prescription subscriptions on terms the agency calls deceptive [1][3]. Utah and Los Angeles County joined the case, filed in the Northern District of California [1][3]. Shares of Hims & Hers fell 10% the same day [1].
The complaint cites Section 5 of the FTC Act, which covers deceptive and unfair business practices, and the Restore Online Shoppers' Confidence Act, or ROSCA, which sets rules for subscriptions that renew unless a customer takes action [3]. It also invokes state consumer protection and privacy law [3].
On privacy, the FTC says the company marketed its care as private and discreet, then disclosed health information in two ways: lists of customers sorted by condition or treatment type given to ad platforms for targeting, and tracking pixels and software development kits on its website that relayed user actions to advertisers including Meta and Snap [1][3]. The complaint notes that celebrity ambassadors and paid influencers described the service as "discreet," which the agency argues turned those statements into enforceable promises [3].
On billing, the FTC alleges most customers were charged for prescriptions right after completing an intake form, before speaking with a medical provider, even though the company suggested people would consult a clinician to find a treatment "right for them" [1][3]. Refill charges were processed about 10 days earlier than customers would reasonably expect, and cancellation was required two days before that early charge date, so missing the deadline meant another payment, according to the complaint [3]. The agency also says cancelling outright was made unreasonably difficult [1][3].
Hims & Hers disputed the case in a statement and in a post on X [1][2]. "This lawsuit disregards substantial evidence we provided the FTC during its nearly three-year investigation, ignores established state laws and industry standards in telehealth, and contorts the law to try to manufacture claims," the company said, calling the action "an effort to generate headlines at our expense" [2]. The company said its privacy policy makes clear that customers may choose how their data is used and that information patients share with providers is used only in delivering care [2].
The FTC's investigation dates to October 2023. In April 2026 the agency formally communicated its findings and settlement discussions began. In May 2026, Hims & Hers disclosed a $15 million probable-loss accrual tied to the matter, warned the final cost could be materially higher, and said it made a settlement offer without admitting wrongdoing [1].
Why it matters for patients
Hims & Hers is one of the largest telehealth platforms in the United States, offering virtual appointments and shipped prescriptions for weight loss, erectile dysfunction, hair loss and mental health, and it is a significant player in the market for GLP-1 weight-loss medications [1][3]. The allegations concern how the company sells, bills and handles data — not whether any medication works or is safe [1][3].
Two of the practices described are common to health subscriptions: automatic refill charges that land sooner than a customer expects, and a cancellation window that closes days before a charge goes through [3]. The privacy claims raise a separate question — whether details about the conditions someone sought treatment for could reach advertising platforms [3]. Hims & Hers says customers can choose how their data is used [2].
Nothing has been proven. A complaint has been filed, no court has made findings of liability, and the $15 million figure is the company's own accounting estimate [1][3].
What happens next
The case is pending in the Northern District of California [3]. No trial date or hearing schedule has been reported, and it is not known whether the earlier settlement talks will continue [1]. The specific remedies the government is seeking have not been reported [3].
Sources
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