The Federal Trade Commission (FTC), alongside the states of Utah and California, has filed a lawsuit against telehealth company Hims & Hers Health, accusing the firm of sharing users’ personal information with third-party advertising platforms and engaging in deceptive billing and subscription cancellation practices.

According to the complaint, Hims & Hers disclosed lists of certain customers and tracked visitor activity on its website, providing this data to advertisers including Meta and Snap. This sharing occurred despite the company’s public assurances that patient privacy was being protected. The FTC alleges that these actions violated consumer protection regulations given the sensitivity of health-related information.

In addition to privacy concerns, the lawsuit claims that Hims & Hers misled users about its billing procedures. Specifically, the company is accused of charging patients before they had consultations with healthcare providers. The FTC also contends that Hims & Hers made it difficult for consumers to cancel their subscription services, potentially trapping customers into ongoing payments without clear or accessible cancellation options.

Hims & Hers has denied the allegations and stated it intends to vigorously defend itself against the lawsuit. Following news of the legal action, the company’s shares fell approximately 15% in trading on Wednesday.

The case highlights ongoing scrutiny of telehealth providers as their services expand and collect large amounts of sensitive medical data. The FTC’s enforcement efforts underscore regulatory concerns about transparency, data privacy, and fair billing practices in the growing digital healthcare market. The outcome of this lawsuit may set precedents for how telehealth companies handle consumer information and financial transactions moving forward.