NextMed Settlement Overview
In July 2025, the Federal Trade Commission (FTC) proposed a settlement with telehealth company Southern Health Solutions, Inc. (doing business as NextMed) in connection with its deceptive pricing, false advertising, and fabricated reviews surrounding its GLP1 weight-loss program. As a result of the FTC’s investigation, it was revealed that NextMed lured consumers with:
- Hidden Costs: NextMed advertised low monthly prices for GLP-1 weight-loss programs but failed to mention that the program subscription fee did not include the actual drug product, lab tests, or doctor visit costs. The programs also came with costly termination fees.
- Fake Reviews: The company posted fake positive reviews, used testimonials from people who were not customers, and offered amazon gift cards in exchange for users removing negative online reviews.
- Exaggerated Weight Loss Claims: NextMed claimed users lost an average of 53 pounds or 23% of their body weight without evidence to support their claim.
The FTC’s proposed order imposes a $150,000 fine and also requires the company to be fully transparent about costs, back up health claims with real data, and make it easy for consumers to cancel or get refunds.
Key Takeaways for GLP-1 Stakeholders
GLP-1 stakeholders, including telehealth companies, providers, and pharmacies, should all be aware of important takeaways from this settlement:
- Substantiated Claims Are Mandatory: Any claims about the efficacy or typical results of GLP-1 medications, whether FDA-approved or compounded, must be supported by competent and reliable scientific evidence. Setting aside the FDA enforcement activity that may be prompted by such claims, unsubstantiated or exaggerated claims are also a direct target for FTC enforcement.
- Transparent Pricing and Terms: All costs, including the price of the medication, required lab work, consultations, and any membership or subscription fees, must be clearly and conspicuously disclosed to consumers before any payment is collected.
- Review and Testimonial Practices Under Scrutiny: The FTC’s order specifically bans the use of fake reviews, testimonials from non-users, and any manipulation of consumer feedback. Companies may not selectively solicit positive reviews, offer incentives to remove negative reviews, or misrepresent the source or authenticity of testimonials.
- Navigating Litigation and Intellectual Property Risks: All stakeholders, including telehealth companies, compounding pharmacies and practitioners, must be vigilant in their advertising, record-keeping, and operational practices to avoid both FTC enforcement and private litigation from brand manufacturers. Best practices include clear documentation and legal review of all marketing materials.
Evaluating Compliance
The FTC’s NextMed action signals enforcement against telehealth models and others focused on GLP-1 trends and beyond. The agency has made it clear that it will not hesitate to pursue organizations that use misleading prices, fake reviews, or deceptive claims to market GLP-1 weight-loss programs. As FTC enforcement progresses, stakeholders within the industry should proactively seek healthcare counsel to review the compliance of their marketing and website content, as well as their policies and operations. Separately, to prevent FDA scrutiny, stakeholders should also assess whether the compounded medications ordered in their business models could be considered “essentially a copy” of a commercially available product and how to navigate this highly regulated area.
How Frier Levitt Can Help
Frier Levitt’s attorneys are familiar with current and emerging FTC enforcement trends and are available to provide guidance on your organization’s marketing practices related to GLP-1 compounded products. Contact us today to learn how we can support your compliance efforts.
Frier Levitt provides strategic, industry-focused legal counsel tailored to your needs. Contact our team today to learn how we can help you.
