Hims & Hers Health Inc. (NYSE:HIMS) urged a court to throw out a consumer deception lawsuit, asserting that plaintiffs ignored clear, upfront disclosures regarding data privacy, subscription charges, and cancellation policies.
The company argued that plaintiffs attempted to manufacture deception claims by disregarding the explicit terms and policies that consumers must acknowledge prior to purchasing.
Disclosures Contradict Telehealth Privacy Allegations
According to a lawsuit document dated Thursday, Plaintiffs contend that the telehealth provider promised discreet services while secretly sharing customer data with advertising platforms.
However, the company highlighted that every user must review and acknowledge its formal privacy policy before establishing an account.
That official policy explicitly discloses that user data, including sensitive health-related platform activity, may go to marketing and advertising partners.
The policy also outlines third-party tracking and provides direct links to manage settings with advertising networks like Meta Platforms Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOGL). The company stressed that marketing descriptions of discreet care cannot displace these binding, clear disclosures.
Clear Subscription Terms Refute Billing Accusations
Addressing claims regarding misleading subscription billing, the company emphasized that its checkout system provides transparent pricing and terms.
Although plaintiffs cited promotional phrases like zero-dollar initial visits, the company’s checkout screen clearly outlines subsequent costs.
The platform specifies that consumers face a $147 fee for an initial 90-day medication supply upon receiving a prescription, alongside automatic recurring charges every 90 days thereafter until cancellation.
Refill shipments and charges occur ten days early, offering unambiguous timelines without promising any redundant payment authorizations.
Simple Cancellation Options Satisfy Federal Requirements
The company also rejected accusations under the Restore Online Shoppers Confidence Act, noting that fixed-term installment contracts do not represent negative-option billing.
Even if the statute applies, the company demonstrated that it provides simple cancellation mechanisms. Customers can cancel subscriptions via phone, email, live chat, dedicated web accounts, and mobile applications.
Because the complaint fails to demonstrate ongoing violations or intentional misconduct, the company asserted that plaintiffs have no legal basis for injunctive relief or civil penalties under Federal Trade Commission standards.
Consequently, the company requested a complete dismissal of the action.
HIMS Price Action: Hims & Hers Health shares were down 2.03% at $28.54 at the time of publication on Friday, according to Benzinga Pro data.
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