Hims & Hers Health, Inc. (HIMS.N): FTC Sues HIMS for Alleged Privacy Violations and Deceptive Billing Practices

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Hims & Hers Health, Inc. (HIMS.N): FTC Sues HIMS for Alleged Privacy Violations and Deceptive Billing Practices

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29 Jul 2026 14:33:35 ET │ 11 pages

Hims & Hers Health, Inc. (HIMS.N)

FTC Sues HIMS for Alleged Privacy Violations and Deceptive Billing

Practices

CITI'S TAKE Neutral / High Risk

Price (28 Jul 26 16:00) US$29.32 This afternoon, the FTC, along with California and Utah state authorities,

Target price US$35.00 filed suit against HIMS for allegedly transmitting patient health

information to online advertisers despite promising services would be Expected share price return 19.4%

"100% online, private, and secure," and for engaging in deceptive billing Expected dividend yield 0.0%

and cancellation practices (link). The complaint alleges HIMS shared Expected total return 19.4%

sensitive health data (including mental health conditions, erectile Market Cap US$6,786M

dysfunction, and hair loss treatments) with 15+ advertising platforms from

2019 through May 2024 using tracking pixels and uploaded customer

lists. While penalties remain unspecified, recent enforcement actions

against telehealth companies provide useful benchmarks. Notably, Daniel GrosslightAC

Teladoc paid $7.8M in 2023 for sharing data with Meta and Snap (link), +1-212-816-9180

GoodRx paid $1.5M in 2023 for similar violations (link), and Cerebral paid daniel.grosslight@citi.com

$7M in 2024 (link). Luismario Higuera

luismario.higuera@citi.com

We view Cerebral as the closest proxy, since the FTC's allegations similarly combine

improper use of sensitive health data for advertising with deceptive subscription

and cancellation practices. Beyond repaying $5.1M in customer refunds, Cerebral

was ordered to pay a $10M civil penalty judgment, subsequently reduced to $2M

due to inability to pay.