The Advanced Medical Institute Pty Ltd and AMI Australia Holdings Pty Ltd in Australia are in trouble over allegations that patients were inappropriately diagnosed and promised refunds that were not delivered.
The Australian Competition and Consumer Commission (ACCC) has launched legal proceedings against the company, which promotes and supplies services for men suffering from erectile dysfunction and premature ejaculation.
The ACCC has alleged that the company breached the Trade Practices Act from 2008 to 2010.
They conducted consultations, which did not provide an appropriate diagnosis or medical treatment, it said.
According to the Age, the AACC also alleged that AMI's sales representatives promised refunds if the treatments failed, but did not accurately disclose refund conditions.
Trent Hancock and Michael Hird of the firm BDO said, "AMI's hundreds of thousands of clients in Australia and New Zealand should not experience any change to their treatments or service. They can expect to receive their normal medical care as we intend to conduct AMI's business as normal," in a statement.
"The underlying local business appears sound and robust. We intend to explore restructuring options over the next few weeks."