Updated: December 15, 2025
What You Should Know:
– The Federal Trade Commission (FTC) has finalized a settlement with Southern Health Solutions, Inc. (doing business as Next Medical and NextMed) and its executives, Robert Epstein and Frank Leonardo III.
– The settlement concludes a regulatory matter involving allegations of deceptive marketing regarding the company’s weight-loss membership programs.
Overview of the Regulatory Allegations
In its initial complaint, the FTC alleged that the telemedicine provider utilized misleading cost representations and unsubstantiated weight-loss claims to attract consumers to its GLP-1 drug programs (such as Wegovy and Ozempic).
It is important to note that the settlement was reached via a Consent Order, in which NextMed and its principals agreed to the terms without admitting to any of the specific findings of fact or violations of law alleged by the Commission.
Key Allegations Cited by the FTC
The FTC’s complaint centered on several areas of concern regarding NextMed’s business practices during its peak growth period in 2022:
- Cost Transparency: The FTC alleged that advertised monthly prices ($138–$188) failed to clearly disclose that the costs of the medication, lab work, and physician consultations were separate.
- Membership Terms: The complaint claimed that a mandatory one-year commitment and early termination fees were not sufficiently disclosed to consumers prior to sign-up.
- Marketing Claims: Regulators challenged the substantiation of claims regarding average weight loss (e.g., “53 pounds”) and questioned the authenticity of certain “before and after” photos and customer testimonials.
- Review Management: The FTC alleged that the company unfairly managed its online reputation by disputing negative reviews on third-party platforms without a reasonable basis and offering incentives for the removal of negative feedback.
Final Settlement Terms (Approved December 2025)
Following a public comment period, the FTC officially approved the Final Order in December 2025. The settlement focuses on behavioral remedies and consumer redress rather than a judicial finding of fraud.
1. Monetary Payment: NextMed and its principals paid $150,000 to the FTC. These funds are designated by the Commission to provide refunds to affected consumers.
2. Compliance and Oversight: Under the terms of the final order, NextMed is required to:
- Substantiate Claims: Provide “competent and reliable scientific evidence” for any future health or weight-loss claims.
- Enhance Disclosures: Clearly and conspicuously disclose all costs, drug exclusions, and cancellation terms before a consumer is billed.
- Review Integrity: Refrain from misrepresenting that reviews come from independent consumers and cease any practices that involve incentivizing the removal of negative reviews.
- Streamline Cancellations: Maintain a “simple mechanism” for consumers to cancel subscriptions and obtain refunds according to the disclosed terms.
Statement on Legal Status
As of December 2025, this matter is considered resolved. The settlement serves as a regulatory agreement to ensure future compliance with the FTC Act and the Telemarketing Sales Rule. NextMed continues to operate its telehealth platform under the stipulated compliance monitoring mandated by the Commission.
