Hims & Hers moves to dismiss FTC lawsuit

Hims & Hers Health has filed a motion in the US District Court for the Northern District of California to dismiss a federal lawsuit brought in July by the Federal Trade Commission, California authorities, and Utah regulators. The complaint accuses the telehealth company of deceptive subscription billing, making cancellation difficult, and misleading consumers about the sharing of sensitive health information with advertisers. Hims is asking the court to dismiss all nine counts in the case, arguing that regulators have misapplied federal law on subscriptions and privacy.

The lawsuit alleges that users were charged for prescription medications shortly after completing online intake forms, despite marketing that suggested they would first consult a provider to find a treatment that was right for them. Regulators also claim that cancellation was made unnecessarily hard, with some customers needing to navigate several web pages to find out how to cancel subscriptions. A hearing on Hims’ dismissal motion is scheduled for January 7, 2027, before US District Judge Vince Chhabria.

A core element of the case concerns allegations that Hims shared sensitive health data, including information linked to conditions such as obesity, hair loss, and erectile dysfunction, with third-party advertising platforms including Meta (META) and Snap (SNAP). Regulators say consumers were misled about how their information would be used and shared. Hims had previously called the allegations baseless and now directly challenges the privacy-related claims in its court filings.

Hims points the court to its privacy policy, which users are directed to and must acknowledge when creating an account. The company says this policy expressly discloses that it may provide personal information to marketing and advertising partners, including sensitive information such as health data. Hims argues that references in its marketing to private and discreet services describe the convenience of online care rather than a promise not to share data with advertisers, and that reasonable consumers were adequately informed by the disclosed policy.

The complaint also focuses on Hims’ subscription and billing practices. Regulators allege that some customers expected to speak with a healthcare professional before paying anything, but instead were enrolled in paid subscriptions once prescriptions were approved. Hims disputes that its practices are deceptive, emphasizing that intake and checkout screens clearly disclose pricing and terms before submission.

As an example, Hims cites a checkout page showing an initial payment of $147 for a 90-day supply of medication, followed by another $147 payment every 90 days. The company explains that its historical subscriptions are fixed-term contracts of up to 12 months, paid in installments, and argues that these do not qualify as negative-option billing under federal law because they do not automatically renew indefinitely. Hims further says that customers have long been able to cancel via telephone, email, or chat, and that broader online cancellation options were added in April 2023.

In addition to disputing liability, Hims argues that regulators have failed to establish a basis for monetary or injunctive relief in the case. Nonetheless, the company has set aside about $60 million related to the legal dispute, while the eventual financial impact remains uncertain. Hims also underscores that its business is heavily dependent on subscription revenue, reporting nearly 2.9 million subscribers in the second quarter, a 19% increase from a year earlier.

The January 7, 2027 hearing before Judge Vince Chhabria will determine whether the lawsuit proceeds or is dismissed at this stage. Until then, the dispute centers on whether Hims’ disclosures and contract structures meet federal requirements for subscription billing and the handling of sensitive consumer health information. The outcome could shape how telehealth providers design privacy policies and subscription frameworks for digitally delivered care.