The U.S. Federal Trade Commission (FTC), along with the states of California and Utah, has filed a lawsuit against telemedicine company Hims & Hers. Regulators allege that the company, while emphasizing a "private and secure" healthcare experience to users, simultaneously transmitted sensitive health information to Meta, Snap, and other advertising platforms.

The lawsuit has been filed in the U.S. District Court for the Northern District of California. The FTC points out that Hims repeatedly stated on its website and in its advertisements that its service is "100% online, private, and secure," and that medical records and sensitive health information will only be viewed by the medical personnel responsible for the treatment. However, regulators say this is not the case.

Involves tracking tools such as Meta Pixel

According to the lawsuit, Hims used Meta Pixel, the Meta Conversions API, and tracking technologies from companies such as Google, Microsoft, Reddit, TikTok, Pinterest, and X to transmit user activity information on the platform to third-party advertising partners.

The FTC believes these practices involve not just ordinary browsing data, but sensitive information related to medical care and medication purchases. Affected services include treatments for erectile dysfunction, premature ejaculation, mental health, hair loss, and weight loss. The regulator also stated that Hims consistently emphasized "privacy" and "discretion" in its television, radio, podcast, and influencer promotions, but failed to clearly inform users that their data would be shared.

The regulator also accused the company of misleading subscriptions.

In addition to privacy concerns, the FTC also alleges that Hims employs a deceptive subscription design. The lawsuit claims that the company uses "free consultations" as a selling point, telling consumers they can first determine if a treatment is suitable for them before deciding whether to purchase medication.

However, regulators stated that many users were directly charged and automatically added to a prescription drug revolving subscription after filling out their information and having it reviewed by medical personnel, without sufficient opportunity to view or confirm their treatment plans. The FTC also stated that the company did not clearly disclose refill times, and the cancellation process was hidden behind multiple menus and retention pages.

The case will be heard by the court.

Christopher Mufarrige, head of the FTC's Bureau of Consumer Protection, stated that the lawsuit describes situations including consumers being unknowingly bundled into recurring subscriptions and their most private health information being disclosed to third parties without their consent. The FTC says it will file a lawsuit whenever there is reason to believe that a company is currently or is about to violate the law and the case is in the public interest.

Hims & Hers has not immediately responded to media requests for comment. The company is a publicly traded company on the US stock market, primarily offering online medical consultations and prescription drug services, with its "sexual health" product line being particularly well-known.

Additional information:The FTC has been increasingly enforcing regulations on how technology companies use data in recent years. The agency previously pushed for Epic Games to pay a $520 million settlement to resolve child privacy allegations and has repeatedly warned that AI technology could amplify fraudulent and misleading business practices.