On a scale of one to ten, the Yikes-o-meter hits a solid twelve with the story that US regulators sued Him & Hers, an online seller of sexual health treatments, for allegedly sharing customer data with social media companies.
In the wake of the report, Hims & Hers Health saw its stock price collapse around 12% in New York on Wednesday, losing $3.58 per share to trade at $25.71.
According to a Reuters report, a scoop by Jody Godoy, the US Federal Trade Commission alleges that the 'telehealth' group had funnelled users' sensitive health information onto platforms used by online advertisers whilst assuring the customers that their data was private.
The filed complaint reportedly names Instagram and Facebook owner Meta Platforms and Snapchat parent Snap Inc among the advertising companies that are alleged to have received the data.
It is also reported that the agency alleges that the company also makes its subscriptions difficult to cancel.
Hims & Hers, meanwhile, with an X post, dismissed the claims as baseless: "This is not enforcement grounded in consumer protection; it is an effort to generate headlines at our expense."
Hims & Hers is one of the largest telehealth players in the market for weight loss drugs, and it also books telehealth appointments and sells treatments for erectile dysfunction, hair loss and mental health medications, which it ships straight to customers.
