My Claim of False Pretenses

Briefly: I hired a marketeer for my small business, and he recommended we sign up for G2.com's service. G2 is an online business comparison website. The marketeer, called John, discussed with G2 how they work and it sounded good, so I paid $12,500 via credit card.

Six weeks later, I realize their service is worthless for my firm, as I am too small to compete with the big firms on their site.

So I requested a refund, claiming my purchase was based on false pretenses, that G2 communicated verbally to John. Those false pretenses are:

1. Ratings are based on most recent reviews (thus I can compete by having brand new reviews). TRUTH is that recency is just one factor in of ratings.

2. We can compete with the existing giants on the site. TRUTH is that there is no way a business with 600 clients can compete with a business with 50,000 clients and 800 reviews.

3. We can be listed on "featured lists" for high exposure. TRUTH is that I am too small to be on any featured lists.

G2 denied a refund and said their policy is no refunds ever.

Their lawyer eventually also reviewed the case and said that "the services were accurately represented" and no refund will be granted.

I filed a "case" against them with Chase Bank (my credit card provider) and after 2 months, they also said the charge is valid.

Question is do I have any further recourse, or should I just drop this?

G2's Master Service Agreement Master Service Agreement | G2 says:

> Any dispute relating to or arising out of this Agreement will be decided through binding arbitration conducted by three neutral arbitrators from JAMS Chicago, Illinois and under JAMS Arbitration Rules & Procedures...

So in theory I could try that, or I could try Small Claims, but apparently the limit in Illinois is $10,000. I could ask for a pro-rated refund of $10K.

Just sending them a nasty letter I don't think will help.

Any advice appreciated.

Hoster said:

Question is do I have any further recourse, or should I just drop this?

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Presumable, you had all the information at the time of you agreeing to a contract and paying the fee for their services. Apparently, you didn't do your due diligence.

And, since your bank investigated and said that the charge was valid, you can certainly throw good money after bad by going into arbitration (and paying for it) or sue in small claims court (and paying for it) or take your own advice and just drop it.

It's an expensive lesson learned, granted.

welkin said:

Presumable, you had all the information at the time of you agreeing to a contract and paying the fee for their services. Apparently, you didn't do your due diligence.

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For the sake of argument, and for me to understand better, it sounds like my claim of:

"Well they said to us (before I signed) it works "like this and like this" and so that's why I agreed and paid!"

will not hold up in court because the Judge would say:

"Sir, verbal promises that may not be in line with the contract you signed are irrelevant. You signed a contract and they are not in breach of that contract. Case closed."

Is that the basic idea here?

Hoster said:

Question is do I have any further recourse

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Sure. You're free to file a lawsuit or proceed with arbitration. A 3-arbitrator panel for such a small dispute is absurd, but that's what you agreed to. Note that no one here is in any position to assess your likelihood of success.

Hoster said:

For the sake of argument, and for me to understand better, it sounds like my claim of:

"Well they said to us (before I signed) it works "like this and like this" and so that's why I agreed and paid!"

will not hold up in court because the Judge would say:

"Sir, verbal promises that may not be in line with the contract you signed are irrelevant. You signed a contract and they are not in breach of that contract. Case closed."

Is that the basic idea here?

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Does the contract say anything like the following? "This Agreement sets forth the entire agreement and understandings of the parties hereto with respect to this transaction, and this Agreement supersedes and nullifies all other agreements - whether written or oral - made between the parties hereto."

Indeed it does, now that you mention it:

This Agreement, which includes the Service Order(s) and Service Descriptions, constitutes the entire agreement between G2 and Client for the Services and supersedes all prior and contemporaneous agreements and understandings, both written and oral.

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That seems clear, unfortunately.

Hoster said:

That seems clear, unfortunately.

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I always heard the phrase as "crystal clear". This is the first time I've seen it as "clear as crystal".

Tax Counsel said:

I always heard the phrase as "crystal clear". This is the first time I've seen it as "clear as crystal".

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Whenever I hear the phrase, "crystal clear", I always think of the movie A few Good Men.