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Blog Category: Negative Option Marketing

Websites touting phony celebrity endorsements — usually accompanied by “free” trial offers and ongoing monthly subscription plans—are rampant. Fraudsters peddle “miracle” weight loss products, age-defying cosmetics, and get-rich-quick schemes using images of Dr. Oz, Oprah Winfrey, Paula Deen, and others. These deceptive sales tactics are often accompanied by negative option billing and (for the consumer)… 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

transaction laundering

The war against transaction laundering continues! The latest battle involves “negative option” sales, where a seller treats a consumer’s silence (that is, their failure to reject an offer) as consent to be charged for goods and services. See 16 C.F.R. § 310.2(w). Where a seller fails to meet federally-mandated disclosure, consent, and cancellation requirements, negative… read more

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