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Investing.com -- Hims & Hers Health (NYSE:HIMS) stock fell 4.1% in after-hours trading on Thursday following a Bloomberg report that revealed the Federal Trade Commission has been investigating the telehealth company’s business practices for more than a year.
According to the report, which cited people familiar with the probe, the FTC is examining complaints about the company’s advertising practices and whether it has made it too difficult for customers to cancel their subscriptions.
Shortly after, Hims House, a podcast not officially associated with the company, reported a Hims & Hers statement saying, "We’ve seen a rehashed story from Bloomberg about an ongoing FTC inquiry. This is the same inquiry as last year, and as we said then, we support the FTC’s mission to protect consumers and remain committed to best practices in everything we do," adding that the company is "providing information in response."
It is important to note that the company has not been accused of any wrongdoing. Reports from Bloomberg surfaced last year regarding the same FTC probe, but details were not made public.
In response to last year’s report, Hims & Hers acknowledged that it was "voluntarily cooperating" with an FTC investigation but had declined to provide specifics on the nature of the inquiry or the information regulators requested.
The telehealth provider, which offers prescription medications for conditions like hair loss, erectile dysfunction, and mental health through its subscription-based platform, has seen considerable volatility in recent weeks on concerns of a potential GLP-1 lawsuit from Novo Nordisk, as well as missed earnings metrics. Though the FTC probe is not new, investor reaction’s reflect squeamishness in the face of the company’s erratic trading patterns.
(Luke Juricic contributed reporting for this article)