Medvi, a telehealth startup specializing in AI-driven services, is facing scrutiny over its aggressive marketing tactics and use of artificial intelligence to generate deceptive content. Despite employing only two employees, the company generated $65 million in profit last year and is projected to reach $1.8 billion in sales this year. A primary driver of this rapid growth has been the extensive use of affiliate marketers, with founder Matthew Gallagher estimating that roughly 30% of its advertising budget is allocated to this channel. Recent investigations by Business Insider revealed that several affiliates marketed Medvi's weight-loss drugs and male performance products using AI-generated personas that falsely appeared to be licensed medical doctors. Profiles on Meta's ad library, such as "Dr. Matthew Anderson MD" and "Dr. Spencer Langford MD," displayed clear signs of fabrication, including garbled text, AI-generated watermarks, and biographical details that did not match real-world records. Some of these profiles had previously belonged to unrelated individuals or businesses, such as a gospel musician or a clothing retailer. While over 5,000 active ad campaigns linked to Medvi were initially identified, the number dropped to approximately 2,800 after the issues were brought to Gallagher's attention. The Federal Trade Commission (FTC) mandates that advertisers maintain reasonable programs to oversee affiliates, a requirement the agency has flagged as particularly critical for health-related marketing. Medvi has been included in a request for an FTC investigation by the National Consumers League due to claims that terms like "trusted by experts" on its website mislead consumers about the safety testing of its compounded drugs. Nancy Glick, director of the National Consumers League, stated that such practices violate the FTC Act and highlighted the difficulty of policing the industry. Regulatory challenges extend beyond the FTC. In February, the FDA issued a warning letter to the company regarding false or misleading representations on the website medvi.io, specifically concerning comparisons to approved drugs like Wegovy. Gallagher claimed that this specific site was operated by an unauthorized affiliate who used the company's name in the domain, and that the site has since been taken down. Legal complications also abound, with Medvi facing at least three lawsuits in the past 11 months alleging violations of spam laws through unsolicited texts and emails. Gallagher denied any illegal conduct, asserting a strict policy against spam and promising immediate action against non-compliant affiliates. One lawsuit has been dropped, while two remain pending. The company's reliance on AI extends to its foundational operations. The Times reported that Gallagher utilized AI tools such as ChatGPT and Claude to build the business, interact with customers, and generate website content. Although the company currently pays humans for legal and accounting services, its website disclaims responsibility for the accuracy of AI-generated materials. Medvi's troubles reflect broader issues within the telehealth sector, which has surged in popularity since the pandemic. Other companies, such as Cerebral and Done, have recently faced federal investigations or criminal convictions for overprescribing controlled substances and healthcare fraud. With the market flooded with online drug sellers, experts warn that identifying and stopping such violations remains a significant challenge for regulators.