Weight-loss drug customers were caught up in telehealth scam. Here’s how to avoid being a victim

If it sounds too good to be true, then you probably shouldn’t buy it.

That’s the lesson from a recent Federal Trade Commission action against telehealth company, NextMed.

The company received a $150,000 fine for, among other things, making claims about GLP-1 effectiveness without proper evidence, and manipulating consumer reviews.

“The FTC alleged they sold weight-loss programs with undisclosed costs and membership commitments, making unsubstantiated claims about the weight loss achieved by their clients, using fake testimonials, and unfairly distorting consumer reviews,” a FTC statement said.

The scam, which involved GLP-1s such as Wegovy and Ozempic, is representative of the growing number of GLP-1 weight loss ruses, likely leaving some consumers wondering how they can protect themselves.

Scammers are leveraging the popularity of drugs like Ozempic to cheat customers who want help with weight loss (AFP via Getty Images)

Red flags

NextMed’s claims about the effectiveness of drugs such as Ozempic and Wegovy crossed the line, according to the Federal Trade Commission, because they didn’t provide “competent and reliable evidence to support claims about the average or typical results users will achieve.”

To avoid falling into the same trap, it’s important to know some of the classic red flags that signal false advertising, the commission noted in an article earlier this year.

Some of those red flags include claims such as:

“Here’s the truth: Any promise of miraculous weight loss is simply untrue,” the article said. “There’s no magic way to lose weight without a sensible diet and regular exercise. No product will let you eat all the food you want and still lose weight.”

Do your homework

Customers signed up for a GLP-1 subscription, not knowing NextMed planned to make undisclosed charges and enforce hidden membership commitments, according to Federal Trade Commission allegations. That’s a growing ruse in the GLP-1 universe, the Better Business Bureau said in a scam alert published earlier this year.

“GLP-1 medications (like Ozempic) have become popular for both diabetes treatment and weight loss,” the bureau said. “Unfortunately, scammers are taking advantage of their demand and limited availability by tricking people with fake offers and fraudulent websites.”

The popularity of GLP-1 drugs like Ozempic and as led to ‘scammers taking advantage of their demand and limited availability by tricking people with fake offers and fraudulent websites,” the Better Business Bureau said (Getty Images)

In general, consumers falling prey to undisclosed fees and costs is hard to avoid - because the fees are purposely hidden. However, it’s important to know what to do if you notice charges that you didn’t agree to. Below are case-by-case recommendations from the Federal Trade Commission’s Consumer Advice Division:

Be skeptical of success stories

The Federal Trade Commission alleged that NextMed used fake testimonials as part of its pitch, likely resulting in consumers expecting to get similar results from the drug or, at the very least, believing the consumer testimonials.

Because customer success stories can be so powerful, the Federal Trade Commission recommends consumers read each story with a skeptical eye.

“Know that scammers use images showing dramatic weight loss, but these images are just stock or altered photographs, not photos of people who actually used the product they want you to buy,” the agency said.