The Federal Trade Commission (FTC) has reached a settlement with Southern Health Solutions, Inc., operating as Next Medical and NextMed, over allegations of deceptive practices in their telemedicine weight-loss programs. The company is accused of misleading consumers with false pricing, fake reviews, and unsubstantiated weight loss claims.
According to the FTC's complaint, New York-based NextMed and its founders Robert Epstein and CEO Frank Leonardo III marketed telehealth weight-loss programs that provided access to medical providers who could prescribe GLP-1 weight-loss drugs like Wegovy and Ozempic. However, the advertised monthly prices did not include costs for the actual drugs, lab work, or necessary consultations.
The FTC also alleges that NextMed failed to disclose a required one-year commitment with early termination fees in their membership programs. Customers faced delays in cancellations or refunds due to inadequate customer service staffing.
Further accusations include suppressing negative reviews on Trustpilot by challenging critical ones selectively and offering incentives for removing them. The company allegedly posted fake positive reviews from non-customers using testimonials and photos of individuals who had not used GLP-1 drugs for weight loss.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection stated: “Consumers who signed up for NextMed’s programs faced significant unexpected costs and the company’s customer service failures prevented consumers from cancelling or getting a refund.”
NextMed is required to pay $150,000 under a proposed consent order which will be used for consumer refunds. The order prohibits misrepresentation of telehealth service costs and requires evidence for average user results claims. It also bans review manipulation and mandates clear disclosure of refund terms before payment.
The Commission voted 3-0 to issue the administrative complaint and accept the proposed consent agreement. This agreement will be published in the Federal Register soon for public comment before potentially becoming final.
Christine DeLorme from the FTC’s Bureau of Consumer Protection is handling this matter. The FTC emphasizes its role in promoting competition while protecting consumers from fraudulent practices.
