Hims and Hers shares fall 10% as FTC sues company over data, billing practices
The FTC sued Hims & Hers over alleged health data sharing with Meta and Snap, billing practices and subscription cancellations.
Shares of Hims & Hers, a telehealth company focused on sensitive health issues, fell 10% after the Federal Trade Commission (FTC) sued the company over its data and billing practices. The FTC alleges that Hims & Hers shared sensitive health data with third-party companies, including Meta and Snap, without user consent. This lawsuit raises concerns about the company's handling of sensitive health information and its compliance with regulations.
The FTC's complaint also targets Hims & Hers' billing and subscription cancellation practices, suggesting that the company made it difficult for customers to cancel their subscriptions and engaged in deceptive billing practices. These allegations are particularly concerning given the company's focus on sensitive health issues, where trust and transparency are paramount. The telehealth industry has faced increased scrutiny over data privacy and security, and this lawsuit may have implications for the sector as a whole.
Investors should watch how Hims & Hers responds to the FTC's allegations and any potential developments in the lawsuit. The company's stock has been under pressure in recent months, and this news may exacerbate existing concerns. Additionally, investors may want to monitor the company's efforts to address data privacy and security concerns, as well as its billing and subscription practices, to assess its commitment to transparency and customer trust.
Originally reported by cnbc.com. LargecapNews adds analysis for finance & markets readers.