FTC Alleges Hims & Hers Violated Users' Privacy

A fast-growing telehealth brand is in the FTC's crosshairs. Regulators on Wednesday sued Hims & Hers, accusing the online health provider of quietly feeding users' sensitive medical data to advertising platforms including Meta and Snap, despite pledging to keep that information private, reports CBS News. The company's stock dropped nearly 15% after the complaint landed in federal court in Northern California.

The FTC alleges Hims & Hers shared customer lists and also made it confusing to see charges and cancel subscriptions. More specifically, the Wall Street Journal reports the FTC accused the company of not clearly stating users' refill dates, making it tougher to know when the next billing date would be, and of not prominently displaying an online cancellation button. In a statement, the company called the allegations "baseless" and said the suit "disregards substantial evidence we provided the FTC during its nearly three-year investigation."