It's also not good at all. Paper wallets shouldn't look like something wich can be sold bought or exchange. At first... And all this sealings on a paper wallets give the user same feeling as well. You are constantly trying to make a physical bitcoin carrier that looks like an exchangeble things like coins banknote public bond or something that can be given as a present or sold. It is a destructive activity.
Why are you doing that?? And why are you priding of that?
I don't see it as fraudulent, as long as the person receiving it understands the caveats. The way I see it, it is the responsibility of each individual seller or reseller of physical bitcoins to make sure the buyer understands the relevant security limitations. If this isn't done, that's not the fault of the original manufacturer of the coins.