Hims & Hers Health shares fell 9.2% in afternoon trading after Bloomberg reported that Visa enrolled the telehealth company in its Acquirer Monitoring Program following a surge in customer credit card disputes in its weight-loss subscription business. The company faces an estimated $75,000 penalty after dispute rates exceeded acceptable limits, though a spokesperson said the company has seen a relatively small number of disputed charges and that checkout is clear about membership and medication costs. The billing scrutiny follows a recent FTC update alleging deceptive billing and cancellation practices, claims the company has stated it will vigorously defend against. The stock closed at $31.02, down 8.3% from the previous close.
Hims Hers Health IncVisa billing scrutiny and FTC allegations of deceptive practices negatively impact Hims & Hers.
Visa Inc. Class A