• Hims & Hers called the allegations “baseless.”
• The company has faced prior regulatory scrutiny, including a 2025 FTC investigation into its advertising and cancellation practices.
• The stock move comes amid recent volatility tied to the company’s ambitions in peptide therapies.

Hims & Hers (HIMS) shares slumped 13% on Wednesday after the U.S. Federal Trade Commission sued the telehealth company over allegations it shared sensitive user health data with advertisers, including Meta Platforms and Snap, while also engaging in deceptive billing and cancellation practices.

FTC’s Allegations

According to the complaint, Hims “shared consumers’ sensitive health information” with third-party advertising companies and platforms such as Meta Platforms and Snap through tracking technologies including the Meta Pixel, Meta Conversions API, and similar tools used with Snap and other platforms (Google, TikTok, etc.). The agency alleges this occurred despite Hims’ public assurances of a “100% online, private, and secure process” and statements that “medical records and sensitive information are only accessed by the medical providers managing your care.”

On billing and consultations, the complaint states that “contrary to Hims’ promises, Hims does not provide most consumers with the opportunity to consult with a provider” and that “Hims’ providers regularly and unilaterally prescribe a treatment without offering the consumer a consultation… at which point Hims immediately charges the consumer.” It further alleges consumers are misled by “free consult” and “you will only be charged if prescribed” language, with charges occurring after an intake form review and before any meaningful provider interaction.

Regarding cancellations, the filing claims Hims “made it difficult for consumers to cancel their subscriptions,” using multi-step online processes, unclear refill charge dates, and short cancellation windows as brief as two days prior, resulting in unwanted charges.

FTC was joined by Utah and California in the lawsuit.

HIMS Responds

Hims & Hers called the allegations “baseless,” saying, “This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense.”

The company pointed to its privacy tools and three years of cooperation with investigators.

“We are confident in our position and will vigorously defend ourselves against these baseless claims,” the company said.

HIMS Operations

Hims & Hers operates a direct-to-consumer telehealth platform that provides online consultations and ships prescriptions for conditions including erectile dysfunction, hair loss, mental health, and weight management. The company has faced prior regulatory scrutiny, including a 2025 FTC investigation into its advertising and cancellation practices.

The stock move comes amid recent volatility tied to the company’s ambitions in peptide therapies. Last week, an FDA advisory panel delivered mixed recommendations on adding certain peptides to a list that would allow compounding pharmacies to produce them. Hims has acquired a peptide manufacturing facility and views the category as a potential multi-billion-dollar opportunity. Shares had already been under pressure in recent sessions related to those regulatory developments.

The company, which expects 2026 revenue of $2.8-$3 billion, up from the $2.35 billion reported in 2025, is scheduled to report second-quarter results after the market close on August 10.

How Did HIMS Retail Traders React?

On Stocktwits, retail sentiment around HIMS stock stayed within ‘extremely bullish’ territory over the past 24 hours, while message volume remained ‘extremely high.’

A Stocktwits user said they are bullish on HIMS in the long term but expect the selloff to continue in the short term.

Another user opined that the FTC’s decision to sue HIMS alone is ‘random’.

HIMS stock is down 21% year to date. 

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