Hims argued that the agency ignored the company’s disclosures and misapplied federal law on subscriptions and privacy.
- The FTC, joined by Utah and Los Angeles County, sued Hims in July in the Northern District of California.
- In its Thursday filing, Hims said its privacy policy, which users acknowledge when creating an account, explicitly states that it “may provide personal information to marketing and advertising partners.”
- U.S. District Judge Vince Chhabria has scheduled a January 7 hearing on the motion.
Telehealth firm Hims & Hers Health Inc. (HIMS) filed a motion on Thursday asking a California federal judge to dismiss the Federal Trade Commission’s lawsuit, which alleged the company misled consumers about its products, made cancellation difficult, and shared sensitive health information with advertisers.
Hims argued that the agency ignored the company’s disclosures and misapplied federal law on subscriptions and privacy, according to court filings first accessed by Bloomberg. The stock closed flat in the regular trading session and slipped about 1% after hours.
FTC’s Allegations Against HIMS
The FTC, joined by Utah and Los Angeles County, sued Hims in July in the Northern District of California.
According to the FTC, Hims charged users for prescription medications shortly after they completed online intake forms, even though marketing suggested they would first consult a provider to find a treatment that was “right for them.” The agency also claimed cancellation was made unnecessarily difficult. On privacy, the complaint says Hims shared sensitive health data—linked to conditions such as obesity, hair loss, and erectile dysfunction—with platforms including Meta and Snap. The company had previously termed the allegations “baseless.”
Hims’ Arguments
In its Thursday filing, Hims said its privacy policy, which users acknowledge when creating an account, explicitly states that it “may provide personal information to marketing and advertising partners,” including “sensitive information such as health data.” Hims argued that references to “private” and “discreet” services described the convenience of online care, not a guarantee against data sharing with advertisers. It added that the FTC’s claims lack the required specificity and that reasonable consumers were informed by the policy.
On subscriptions, Hims contended that intake screens clearly disclose pricing and terms before submission. The company also said charges occur only if a prescription is issued, that plans are fixed-term contracts paid in installments rather than negative-option features, and that cancellation has long been available by phone, email, or chat, with online options added in 2023.
U.S. District Judge Vince Chhabria has scheduled a January 7 hearing on the motion.
How Did HIMS Retail Traders React?
On Stocktwits, retail sentiment around HIMS stock fell from neutral to bearish territory over the past 24 hours, while message volume stayed at normal levels.
HIMS stock has fallen 10% year-to-date.
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