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Blog Category: Misleading Marketing Claims

Nutraceuticals Claims Guide

When onboarding a nutraceutical merchant, how do you know which claims are compliant versus which claims cross the line? Obviously, a dietary supplement cannot be marketed with claims to miraculously cure COVID-19, but can it be marketed to relieve joint pain? Or reduce inflammation? What if the merchant’s website is claim-free, but its social media includes claims to help treat hypertension? Can a merchant… read more

As COVID-19 engulfs the US, increasing numbers of unethical internet merchants are targeting consumers who are homebound, anxious—and online. According to DomainTools, over 100,000 high-risk coronavirus-related domain names have been created since January.   G2 analyzed these domain names and looked for trends. We found the following:   Exponential Growth In the months of January and… read more

merchant risk

Weight loss scams come in all sorts of shapes and sizes – pun intended! In addition to causing consumer harm, these boondoggles lead to chargebacks, regulatory scrutiny, and brand-damaging publicity. Here at G2, we keep an eye out for all types of merchant risk, including the following: Misleading Claims The FTC warns third parties to… read more

Did you know that all contact lenses – even decorative non-corrective contact lenses – are considered prescription-only medical devices in the US? That’s right! If a merchant is shipping contact lenses (even crazy vampire-eye lenses!) to the United States without properly requiring a prescription, then that merchant is violating US law and at risk of breaking card… read more

Affiliate marketing is on the rise as merchants seek new methods and better tools to improve their marketing reach and increase sales. Used properly, affiliate marketing is an extremely useful tool that can produce increased revenue for a business; however, it is also rife with fraud. G2 Web Services estimates that 2 percent of all affiliate-driven transactions are fraudulent.  These fraudulent transactions leave acquirers, ISOs, PSPs and merchants with real financial loss as well as a significant increase in chargeback levels.

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