The telehealth provider Hims & Hers misled consumers about privacy, billing and subscription practices, the Federal Trade Commission alleges in a lawsuit joined by the states of California and Utah.
The complaint, filed last week in U.S. District Court for the Northern District of California, alleges that Hims & Hers failed to clearly disclose that it charges for prescriptions almost immediately after consumers submit an intake form, despite telling them they will be able to consult with a medical provider to find a treatment that is “right for them.”
The company also has made it difficult for consumers to cancel subscriptions and misled them about keeping their health information private.
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“The FTC’s complaint lays out a troubling scenario—consumers unknowingly locked into recurring subscriptions and the disclosure to third parties of consumers’ most private health information without their consent,” said Christopher Mufarrige, director of the agency’s Bureau of Consumer Protection. “The FTC will not hesitate to act on behalf of consumers deprived of their ability to choose which products they want and whether to keep their most sensitive health information private.”
Hims & Hers provides telehealth services and direct-to-consumer prescription medications for certain conditions. Consumers who express interest must fill out an online intake form for review by a medical provider before obtaining treatment. In ads and on its website, the company has claimed that consumers can connect and consult with a medical provider to determine whether they need prescription medication. When consumers fill out this form, they are asked to provide their billing information despite assurances that they will not be charged unless and until medications are prescribed, according to the complaint.
FTC suit claims Hims & Hers doesn’t give consultations to consumers
However, the lawsuit alleges that the company does not give most consumers a consultation with a provider. Instead, most consumers unknowingly will be charged for and subscribed to a prescription treatment without having an opportunity to review or approve it. The complaint further alleges that Hims & Hers fails to clearly and conspicuously inform consumers when their prescriptions will be refilled each month, making it difficult to cancel before the next billing cycle. These practices have generated numerous complaints from consumers.
These practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act, which prohibits deceptive billing and subscription practices, according to the agency. Utah alleges violations of its Consumer Sales Practices Act, while California alleges violations of the state’s False Advertising and Unfair Competition laws.
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