Hims & Hers Health Inc. ( 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 ( HIMS ) 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 X that it received an official statement from the company. The statement said, “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. We are voluntarily cooperating and providing information in response.”

In the second quarter of 2025, Hims & Hers’ revenue grew 73% year over year to $544.83 million, missing analyst estimates of $549.83 million.

Subscribers grew to over 2.4 million in the quarter, up 31% year-over-year. Gross margin came in at 76% in the second quarter. Monthly online revenue per average subscriber jumped 31% to $74.

Recently, Hims & Hers Health ( HIMS ) shares have been under pressure since the FDA announced earlier this year that semaglutide, the active ingredient in Wegovy, had been removed from the drug shortage list. This change had a notable impact on Hims & Hers.

The telehealth company sells cheaper, compounded versions of popular weight-loss drugs.

Novo Nordisk is suing dozens of U.S. pharmacies and companies for selling cheaper copies of its weight-loss drug Wegovy. But Hims & Hers is missing from the list.

Novo Nordisk said it isn’t ruling out more legal action after filing new lawsuits against 14 small pharmacies, telehealth providers, and weight-loss clinics this week.

Legal experts say Novo Nordisk’s growing legal push against smaller telehealth companies could pressure firms like Hims & Hers to consider a settlement or help Novo Nordisk refine its legal strategy.

Bloomberg reported Wednesday that Hims & Hers CEO Andrew Dudum sold more than $33 million worth of company stock, the largest insider sale since the company went public four years ago.

A filing with the U.S. Securities and Exchange Commission shows Dudum, through a family trust, sold 660,000 shares on August 7 in an open market deal. Dudum remains the company’s largest individual shareholder.

Price Action: HIMS stock is trading lower by 2.72% to $45.85 premarket at last check Friday.

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