Hims & Hers asks court to toss FTC case over privacy and subscriptions

what happened

Telehealth company Hims & Hers Health (HIMS) wants the Federal Trade Commission's lawsuit thrown out. On Thursday it filed a motion in a California federal court, saying the regulator ignored its disclosures and applied federal rules on subscriptions and privacy incorrectly. Stocktwits reported the details, citing court papers that Bloomberg reviewed first.

The FTC, joined by Utah and Los Angeles County, alleges Hims charged customers for prescription drugs right after they filled out online intake forms, despite marketing that promised a provider consultation first. It also says canceling was made needlessly hard, and that health details tied to obesity, hair loss and erectile dysfunction were passed to Meta and Snap. Hims had earlier called the accusations baseless.

In its filing, Hims points to a privacy policy that users accept at sign-up, which states personal data, health information included, may go to marketing partners. The company reads words like 'private' and 'discreet' as describing the convenience of online care, not a promise against ad-related sharing. On billing, it notes prices appear before submission, charges apply only after a prescription is issued, and cancellation has long been possible by phone, email or chat, with web options added in 2023. Judge Vince Chhabria scheduled a hearing on the motion for January 7.

why it matters

HIMS closed the regular session flat and slipped about 1% after hours, and the stock is down roughly 10% year-to-date. On Stocktwits, retail sentiment moved from neutral to bearish over the past day, while message volume held at normal levels. The outcome of the dismissal request will show how seriously the court weighs the regulator's claims against the company.

market impact

HIMS: FTC suit over subscriptions and health data adds legal risk to the stock

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