The Federal Trade Commission filed a lawsuit on Wednesday against Hims & Hers, a San Francisco–based telehealth company, accusing it of violating patient privacy and engaging in unfair billing practices. The FTC alleges that Hims & Hers shared sensitive patient information with third-party advertising platforms operated by Meta and Snap.

Hims & Hers has established a significant presence in the telehealth sector, particularly in the market for GLP-1 drugs used for weight loss. Originally known for offering treatments for erectile dysfunction and hair loss, the company gained prominence by selling compounded versions of weight-loss drugs such as Wegovy before transitioning to branded medications including Wegovy, Zepbound, and Foundayo. The lawsuit also contends that Hims & Hers billed patients prior to confirming prescriptions and made it challenging for individuals to cancel their monthly subscriptions.

The complaint was filed in U.S. District Court in California and is supported by officials from California and Utah. Following the announcement of the lawsuit, shares of Hims & Hers dropped by nearly 12 percent.

Responding to the allegations, Hims & Hers issued a statement on the social media platform X, asserting that the FTC ignored evidence provided during a three-year investigation and disregarded industry standards for telehealth services. The company emphasized that its privacy policy permits patients to control how their data is used. It described the FTC’s action as more focused on generating negative publicity than on genuine consumer protection.

The case highlights ongoing concerns about data privacy and subscription practices in the rapidly expanding telehealth industry. The outcome may have broader implications for how telehealth companies manage patient information and subscription billing in the digital advertising age.