On July 14, 2025, Southern Health Solutions, Inc., which operates as Next Medical and NextMed, settled with the Federal Trade Commission (FTC) over serious allegations. The FTC claimed that the company’s weight-loss program used misleading pricing, false advertising, and fake testimonials to promote drugs like Wegovy® and Ozempic®. All three current FTC Commissioners voted to accept the complaint and the proposed settlement.
Main Allegations
Deceptive Pricing: Ads claimed memberships started at “only $79 for your first month,” without revealing other costs like medications, lab fees, or early cancellation fees.
Fake Testimonials: NextMed used fake before-and-after photos and manipulated reviews on sites like Trustpilot, promoting positive feedback while hiding negative experiences.
Unproven Weight-Loss Claims: The FTC pointed out that NextMed’s marketing exaggerated results, claiming an average weight loss of 53 pounds without any evidence.
Poor Customer Service: Customers faced difficulties when trying to cancel subscriptions or request refunds, even though there was a one-year commitment.
Under the settlement, NextMed will pay $150,000 to help refund affected consumers and must follow strict rules against similar deceptive practices in the future.
FTC’s Broader Approach
The FTC has been expanding its focus on health-related marketing claims, which used to target mostly dietary supplements. Now, the agency is cracking down on misleading advertising related to a wide range of health products, including telemedicine services. Their 2022 guidance emphasizes that advertisers must not only comply with FDA rules but also ensure their ads are truthful and not misleading.
Recent data suggests that deceptive health marketing affects millions of consumers. According to a 2023 survey, around 40% of people believe they’ve encountered misleading advertisements regarding health products. This indicates a growing concern among consumers about the honesty of health-related marketing.
Important Takeaways for Telemedicine and Health Companies
Honest Customer Reviews: Companies need to ensure that testimonials reflect genuine experiences from real customers. Any claims should be backed by evidence.
Clear Pricing: Health providers must fully disclose all costs, avoiding vague pricing that hides critical details. Each component—like consultations and medications—should be itemized clearly.
Cancellation Policies: Businesses offering subscriptions must make cancellation easy and transparent. They should clearly inform customers about renewal terms before enrollment.
Compliance with Laws: Beyond FTC rules, membership models should steer clear of potential violations, such as the Federal Anti-Kickback Statute, which regulates how payments are handled in healthcare.
Conclusion
The NextMed case is a clear sign of the FTC’s commitment to monitoring misleading health marketing. Businesses in the health sector must build strong compliance systems to manage the associated risks. As we see consumer trust slowly eroding, transparency and honesty in advertising will be vital for future success.
Keeping consumers informed and safe should be a priority for all healthcare providers as they navigate this complex landscape.
