Telehealth Firms Fined $300K for Illegal Weight Loss Ads

TGA

The Therapeutic Goods Administration (TGA) issued 21 infringement notices totalling $319,260 to 4 businesses and 3 individuals for the alleged unlawful advertising of prescription-only medicines, primarily for weight loss, on their websites.

The infringement notices were issued to businesses including online telehealth clinics and medical practices offering telehealth services.

Name

Number of infringement notices

Total penalty

Advert Digital Pty Ltd

5

$93,900

Eveadam Health Pty Ltd

4

$75,120

Chronic Therapy Pty Ltd

4

$75,120

Reda Compounding Chemist Pty Ltd and a NSW-based individual

4

$60,096

Victorian-based individual (sole trader)

2

$7,512

Victorian-based individual (sole trader)

2

$7,512

It is alleged that each business unlawfully:

  • promoted the use and supply of prescription-only medicines including weight loss and erectile dysfunction medicines such as Ozempic, Saxenda and Viagra
  • advertised weight loss medicines outside of their approved use (indication)
  • stated that certain prescription-only medicines were TGA approved
  • stated that certain therapeutic goods were safe, contravening the Therapeutic Goods Advertising Code.

Nick Henderson, acting Deputy Secretary of the Department of Health and Aged Care said, "Advertising prescription-only medicines directly to consumers is prohibited under the Therapeutic Goods Act 1989 (the Act) as it could create an inappropriate demand for these medicines and lead to unnecessary or harmful prescribing.

"Appropriate treatment options should be determined by a health professional in consultation with their patient," Mr Henderson said.

"Since 2022, the TGA has issued several warnings that advertising Ozempic is prohibited. Further, Ozempic is only approved by the TGA for lowering blood sugar in adults with type 2 diabetes and cannot be advertised to treat any other conditions."

The TGA reminds businesses that unlawful advertising of prescription-only medicines is a breach of the Act, for which significant penalties can apply, including fines, civil or criminal court action.

The TGA will continue to take enforcement action against alleged unlawful import, supply, manufacture and advertising of these products when such activities are detected.

Businesses have a responsibility to understand their legal obligations under the Act prior to advertising therapeutic goods. Details about the legal framework for advertising and guidance on how to advertise therapeutic goods can be found on the TGA website.

If you suspect non-compliance in relation to therapeutic goods or their advertising, you can report it to the TGA at any time and it will be actioned in accordance with our regulatory compliance framework.

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