WASHINGTON, D.C. — The operators of NextMed, a telehealth weight-loss provider, have agreed to pay $150,000 and overhaul their business practices to settle Federal Trade Commission (FTC) allegations that they misled consumers with deceptive advertising, fake reviews, and hidden costs tied to their membership programs.
The FTC’s complaint accuses Southern Health Solutions, Inc., doing business as NextMed, along with founders Robert Epstein and CEO Frank Leonardo III, of violating federal consumer protection laws through a range of deceptive tactics. The company marketed access to medical providers for popular weight-loss drugs such as Wegovy and Ozempic, offering memberships starting at $138 or $188 per month. However, the FTC contends those advertised prices did not include key costs like the medications themselves, required lab work, or medical consultations.
The agency further alleges that customers were locked into one-year contracts with undisclosed early termination fees and faced widespread difficulty when attempting to cancel or obtain refunds due to understaffed customer service.
“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,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Today’s action makes clear that companies cannot hide important information from consumers or neglect their responsibility to respond to valid complaints and concerns.”
The FTC also claims NextMed manipulated consumer perception through fake endorsements and review suppression. According to the complaint, the company used stock images and testimonials from individuals who had not used its services, while simultaneously pressuring dissatisfied customers to remove negative feedback—sometimes in exchange for Amazon gift cards or refunds.
The settlement bars NextMed and its executives from continuing these practices. Under the proposed order, they must:
- Clearly disclose full pricing, terms, and cancellation policies upfront.
- Obtain informed consent before charging customers.
- Refrain from misrepresenting endorsements or manipulating reviews.
- Support weight-loss claims with reliable evidence.
- Provide straightforward refund and cancellation processes and honor valid requests promptly.
The FTC expects the $150,000 payment to go toward consumer redress.
This enforcement marks the latest effort by the FTC to tighten oversight of digital health and wellness platforms amid growing consumer interest in telemedicine and prescription weight-loss drugs.
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