Hims & Hers Stock Drops 10% After FTC Lawsuit Over Data and Billing
The FTC is suing Hims & Hers over alleged health data sharing with Meta and Snap, plus shady billing and subscription cancellation practices.
If you've been a Hims or Hers customer, you might want to sit up straight for this one. The Federal Trade Commission has filed a lawsuit against the popular telehealth company, and the allegations are pretty serious — we're talking about sharing your sensitive health data with social media giants Meta and Snap, along with some questionable billing and subscription cancellation practices. Investors didn't take the news well either, sending shares tumbling roughly 10% on the announcement.
The FTC's core concern here is that Hims & Hers allegedly handed over health-related customer data to Meta and Snap — two platforms that have notoriously complex advertising ecosystems built on personal data. When you're filling out a questionnaire about, say, hair loss or erectile dysfunction, the last thing you expect is for that information to find its way toward targeted ad pipelines on Instagram or Snapchat. That's the kind of data-handling that regulators have been increasingly aggressive about cracking down on.
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Beyond the data privacy angle, the lawsuit also takes aim at the company's billing practices and the way it handles subscription cancellations. Anyone who's ever tried to cancel a subscription-based service knows the frustration of jumping through hoops — and the FTC has been on a real tear lately going after companies that make it deliberately difficult to opt out. If the allegations hold up, Hims & Hers could be looking at significant fines and forced changes to how it operates.
For a company that built its brand on a slick, consumer-friendly digital health experience, this lawsuit is a real credibility hit. The 10% stock drop signals that Wall Street sees genuine risk here — both financially and reputationally. Whether this ends in a settlement or a prolonged legal fight, the pressure is now squarely on Hims & Hers to explain its data and billing practices to regulators and customers alike.
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