This is referred to as the shell game, and in essence is bank fraud. The reason why it is bank fraud is that the “bank page” is not the intended product that advertiser seeks to sell, rather it is a bait and switch scheme to acquire MIDs.
Once the MIDs are acquired, the advertiser then launches a non-compliant website selling 1 non-compliant negative option product across the dozens of merchant accounts that are registered across the dozens of companies that were ostensibly setup as “separate” negative option compliant websites. Merchant bank providers like REDACTED are the banks of choice for many of these negative option advertisers.
Step 4: The advertiser finds a private label supplier of supplements, similar to what Tarr Inc. did, and discovers a fulfillment center to pick, pack, and ship the products.
This allows for the advertiser to pay for only product they ship, that way if their MIDs are shut down they can cut their losses without having too much product overhead.
Step 5: The advertiser needs a way to advertise the negative option trial with hidden terms & conditions. Since Facebook, Instagram, and Google disallow their type of advertising, they turn to affiliate networks to attract rogue affiliates.
