Tuesday, September 22, 2026

Telehealth companies face scrutiny over customer data privacy practices and ethical concerns

September 22, 2026
1 min read
Telehealth companies face scrutiny over customer data privacy practices and ethical concerns

The Federal Trade Commission (FTC) has launched a lawsuit against telehealth pioneer Hims & Hers, alleging the company engaged in deceptive practices concerning customer health data and service transparency, reports BritPanorama.

In the complaint, the FTC claims Hims & Hers automatically enrolled customers into subscription services for prescribed medications without adequate transparency, effectively circumventing informed consent protocols. The lawsuit contends that this practice is both misleading and in violation of U.S. consumer protection laws. Furthermore, it is alleged that the company shared sensitive health data with major platforms such as Meta and Google, contrary to its claims of providing a secure means for users to share information with medical professionals.

The concerns surrounding online health services have intensified since the COVID-19 pandemic, which saw a dramatic rise in the number of telehealth companies encouraging users to access medications for various conditions, including weight loss and anxiety, with minimal consultation with healthcare providers. The FTC’s action against Hims & Hers follows similar cases against other telehealth firms that have been accused of unethical practices, including BetterHelp and GoodRx, where health information was shared without explicit user consent.

Experts highlight that the existing federal laws on health information privacy, such as HIPAA, do not cover many telehealth services, creating a regulatory gap. “There’s an entire universe of companies collecting huge amounts of consumer health data every day that aren’t covered by our current health sector-specific laws,” stated Andrew Crawford, an attorney with the Center for Democracy and Technology. Meanwhile, privacy experts stress the importance of consumers remaining vigilant regarding how their data is being handled across these platforms.

Furthermore, telehealth practices often commence with users completing extensive questionnaires, offering limited direct physician engagement, which raises further concerns about adequate care. A study indicated that less than a third of nearly 50 telehealth companies required real-time consultations with a physician, particularly for the prescription of GLP-1 medications intended for weight loss.

As regulatory scrutiny increases, experts advise users to utilize online privacy tools, such as ad blockers, and to read privacy policies thoroughly before engaging with telehealth services. The FTC’s actions underscore the need for a more stringent regulatory framework that can adequately protect consumers in the ever-evolving landscape of digital health services.

With the debate over privacy in telehealth continuing, the challenges in regulating this rapidly growing sector highlight an urgent need for clearer standards and practices to safeguard consumer interests.

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