Deceptive weight loss ads prompt warning from FTC: "Know what you're signing up for"
As the use of weight loss drugs skyrockets nationwide, so are consumer complaints.
The federal government just reached a settlement with one company after investigators say it used deceptive claims and fake reviews to trick customers.
The Federal Trade Commission's lawsuit says New York-based telehealth company called NextMed ran a series of advertisements promoting its weight loss program in 2022 and 2023. The FTC says the people mentioned in the ads never tried NextMed's program, and many of them were actors, or people who responded to Craigslist postings seeking before and after photos.
That's not all, FTC attorney Christine DeLorme said.
Fake reviews and takedown requests of negative reviews
"They had employees write fake positive reviews, and when there were negative reviews, they contested those reviews and tried to have them taken down," DeLorme said.
The federal government said the company misled users into thinking the cost of its weight loss program included popular medication like Ozempic or Wegovy. Investigators say it didn't include those costs, or the price of consultations and lab work needed for prescriptions.
"Consumers encountered a lot of difficulties in trying to cancel or get a refund, that they were unable to reach the company to get a timely resolution," DeLorme said.
NextMed agreed to pay $150,000 to settle the case. They would not agree to an interview, and did not respond to CBS News New York's email asking for an explanation.
The FTC says consumers should always read the fine print, and if you do get ripped off, you can file disputes with you credit card company and report it to the FTC.
"You want to know what you're singing up for. Am I signing up for one month, or am I signing for 12 months to charge me every month," DeLorme said.