Five US states join FTC suit against Hims & Hers over privacy practices

WASHINGTON, Nov 10 (Reuters) - Five US states have joined the Federal Trade Commission in a lawsuit that ‌alleges telehealth company Hims & Hers Health engaged in deceptive ‌and unlawful privacy practices, the FTC said on Tuesday.

The lawsuit alleges the company ​shared consumers' sensitive health information with third-party advertising platforms including Meta Platforms and Snap, despite claiming its services maintain consumers' privacy.

The case also contends Hims & Hers deceives users about its billing and cancellation ‌practices, according to the ⁠FTC.

The amended complaint filed in the US District Court for the Northern District of California now includes ⁠Arizona, Florida, Nebraska, Ohio and Wisconsin and alleges violations of the states' consumer protection laws in addition to federal laws, the FTC said ​in ​a statement.

Los Angeles County and Utah ​joined the action when ‌the FTC initiated it in July.

Hims & Hers is one of the largest telehealth players in the market for weight-loss drugs. It also treats erectile dysfunction, hair loss and mental health conditions, shipping prescriptions directly to customers.

"We will vigorously defend ourselves against these follow-on ‌claims, which rely on the same flawed ​allegations advanced in the government's lawsuit," ​a Hims & Hers spokesperson ​said on Tuesday.

The FTC alleged Hims & Hers charges ‌users for prescription drugs before they ​meet with healthcare ​providers and makes it difficult to cancel subscriptions.

The company cut its full-year core profit forecast on Monday as higher costs ​tied to a ‌pivot to branded weight-loss drugs and international expansion pressured ​margins.

(Reporting by Kanishka Singh in Washington; Editing by David Ljunggren, ​Matthew Lewis and Cynthia Osterman)