Hims & Hers Health Under FTC Investigation for Cancellation Policies

Hims & Hers Health is under investigation by the Federal Trade Commission (FTC) for its cancellation policies. The investigation aims to assess whether the company's practices comply with consumer protection laws. The probe is ongoing and has not been resolved yet.

The U.S. Federal Trade Commission (FTC) is currently investigating Hims & Hers Health Inc. (HIMS.N) over consumer complaints related to its advertising and subscription cancellation practices. The probe, which began over a year ago, aims to assess whether the company's practices comply with consumer protection laws [1].

Hims & Hers, a leading telehealth platform, offers a variety of health products and services, including medications for common conditions such as obesity, hair loss, and erectile dysfunction. The company has more than 2.4 million subscribers who pay a monthly fee for access to these services [3].

The investigation centers on allegations that Hims & Hers makes it unnecessarily difficult for customers to cancel their subscriptions and continues to charge their credit cards after cancellation. The company has not been formally accused of wrongdoing but has confirmed that it is cooperating with the FTC [2].

The FTC enforces US consumer protection laws that prohibit companies from engaging in unfair or deceptive practices. It also has authority to investigate whether cancellation policies violate a federal law known as the Restore Online Shoppers’ Confidence Act, or ROSCA, which requires sellers to have a "simple" method of termination [3].

The news of the investigation has had a visible impact on Hims & Hers' stock price. Reports indicate a drop in the company's shares after the probe was first reported, raising questions among investors and analysts about the potential implications for its business operations and consumer trust [2].

As the investigation continues, Hims & Hers remains a major player in the telehealth industry. The outcome of this case could influence how regulators assess similar businesses, especially in relation to advertising transparency and subscription management. With no official statements yet from the FTC or the company on the findings or next steps, the situation remains fluid.

References:
[1] https://www.reuters.com/business/healthcare-pharmaceuticals/us-ftc-investigating-hims-hers-over-advertising-cancellation-practices-bloomberg-2025-08-14/
[2] https://www.ainvest.com/news/ftc-investigates-hims-subscription-cancellation-complaints-2508/
[3] https://www.bloomberg.com/news/articles/2025-08-14/ftc-probing-complaints-about-hims-ads-cancellation-practices