Hims & Hers Stock Slips As FTC Probe Into Subscription Practices Resurfaces

Hims & Hers Health Inc. (NYSE:HIMS) stock is trading lower following a media report revealing that the Federal Trade Commission (FTC) has been investigating the company’s business practices for over a year.

Bloomberg reported Thursday that the Federal Trade Commission has been looking into Hims & Hers Health for over a year, focusing on whether the company makes it too difficult for customers to cancel subscriptions.

Some customers claim the company keeps charging their credit cards even after they cancel, the report noted, citing social media posts and complaints to the Better Business Bureau.

Also Read: Hims & Hers Health Posts Weak Q2; Heading Into More Near-Term Challenges, Analysts Say

The FTC enforces laws against unfair or deceptive business practices and can investigate if cancellation policies break the Restore Online Shoppers’ Confidence Act, which requires a simple way for customers to end subscriptions.

Hims House, a Hims investor community, said in a post on ...