FTC takes issue with hidden fees, undisclosed commitments, fake reviews
FTC finalizes order shutting down deceptive marketing by telemedicine firm NextMed
Company accused of hiding costs, faking testimonials, and blocking cancellations
Order mandates refunds, strict billing safeguards, and evidence for future claims
The Federal Trade Commission has given final approval to an enforcement order against telemedicine provider NextMed and two of its principals, requiring them to halt deceptive weight-loss marketing practices and overhaul their billing and cancellation systems.
In a July 2025 complaint, the agency alleged that NextMed, along with executives Robert Epstein and Frank Leonardo, capitalized on surging consumer demand for GLP-1 weight-loss medications such as Wegovy and Ozempic. According to the FTC, the company lured consumers into weight-loss programs with hidden fees and undisclosed membership commitments.
Agency alleges fake reviews and inflated weight-loss claims
Regulators said NextMed made unsubstantiated promises about the weight loss its clients could expect and bolstered those claims with fabricated testimonials. The complaint also accused the company of manipulating online reviews to distort consumer perception.
The FTC further alleged that NextMed routinely failed to honor cancellation and refund requests, and charged consumers without obtaining their express informed consentsometimes initiating recurring debits without authorization.
Order mandates refunds and strict compliance rules
Under the final order, NextMed, Epstein, and Leonardo must pay $150,000, which is expected to be used to provide refunds to affected consumers. The order also imposes a series of requirements and prohibitions intended to prevent future misconduct. Among them:
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The company may not misrepresent the cost of telehealth services.
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Weight-loss claims must be supported by competent and reliable evidence.
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Reviews cannot be misrepresented as truthful or from real consumers, and the company must disclose any unexpected material connections with endorsers.
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Manipulating consumer reviews is expressly prohibited.
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The firm must obtain informed consent before billing consumers or initiating electronic fund transfers.
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All key cancellation and refund terms must be clearly disclosed before purchase, and the company must provide simple cancellation mechanisms and promptly honor compliant requests.
GLP-1 drugs and the weight-loss surge
Glucagon-like peptide-1 (GLP-1) receptor agonists were originally developed to treat Type 2 diabetes, but in recent years theyve become some of the most sought-after medications for chronic weight management. Branded versions such as Wegovy (semaglutide) and Ozempic (also semaglutide, but approved for diabetes) mimic a naturally occurring hormone that helps regulate appetite, slow gastric emptying, and improve blood sugar control. The result for many patients is substantial, sustained weight loss when the drugs are paired with behavioral changes.
Clinical trials for semaglutide have shown average weight reductions of 1015% of body weight over time, far surpassing results seen with older prescription diet drugs. That effectiveness has driven intense consumer interestand created an opportunity for telehealth startups to offer quick, online access to the medications.
But the boom has also raised concerns. GLP-1 drugs can be expensive, may require long-term use to maintain results, and carry potential side effects, including nausea, vomiting, and, more rarely, pancreatitis or gallbladder issues. At the same time, regulators have warned that some telehealth companies oversell benefits, obscure true costs, or fail to provide adequate medical oversight.
It is against this backdrop of soaring demand and increased scrutiny that the FTC has pursued cases like the one against NextMed, aiming to ensure consumers receive truthful marketing, transparent pricing, and legally required billing protections.
Posted: 2025-12-05 16:05:50
