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There is a growing scheme where Chinese web sites advertise items for sale but send something worthless via First Class mail to some other address. This gives them a tracking number that indicates delivery to the Customer's zip code. By sending the envelope to a different address, there is nothing to alert the buyer that anything has "arrived." In my case, the "seller" sent a First Class envelope to someone in my town (I have no way of finding out to whom). USPS tracking does not capture the details of the package, except class and destination zip code. The item I ordered weighs about 10 lb, well above the 16 ounce First Class weight limit - but PayPal considers any tracking record to your town as proof that the seller met his obligation. It's very difficult to reach anyone to register a complaint, but when you do, they are powerless to listen to logic or take action. I'm sure this scam has already yielded millions of dollars stolen from PayPal customers - it seems the company is complicit, with their illusion of protecting customers encouraging people to feel safe. It's a good idea to look elsewhere for a financial system.
I doubt it's just chinese sellers doing it. Random scam sellers do it all over the world do it. Just do research on the seller/merchant before you buy. Don't always bank on price because it may end up biting you. Stick with the merchants you know and are reputable. Don't go to strange websites or ads you never heard of or do the research. If you find little to no info, keep it movin'.
Anyone can put a nice store/ad together. Buyer beware.
Had the same thing happen to me so I reached out to my bank and now they are handling this. I have all of my email correspondence with London Meichi, even the one where they apologized for sending the wrong item, and I still have the packaging that has the name of the end incorrect item clearly stated in it. Good thing I kept my original confirmation email too because it shows clearly what I ordered. So when I got the denial from PayPal this morning, I sent the company a nasty gram (they'll probably ignore it, I know) and I decided to be evil to PayPal and resubmitted a claim but under unauthorized purchase. Made me feel better, anyway. But yeah, you would think that PayPal would trust the consumers in the USA before a foreign company. SMH!
Another interesting version of this I just ran afoul of. The seller is indeed shipping a product but it's cheap garbage somewhat related to what you ordered but nothing at all like what they advertised. I bought a self-solving robotic Rubik's cube (turns out the video they listed on the site was youtube of a Japanese robotics developer) and instead send dollar store plastic crap.
Originally I submitted my claim thinking that Paypal would easier detect this fraud based on the numerous other complaints against the seller. However, I've been reading and it seems like they actually won't. From everything I'm seeing they have found a whole in the dispute resolution. By shipping something they are able to send you $4 of crap plus shipping and keep the other $28 dollars you paid for the item. When you contact them they offer $6-$9 dollars since they know it will cost you $20 to send the garbage back to China and take forever.
In this way they can act with impunity until a critical mass of complaints is filed and they are finally shutdown. Then they just start up again with a different name. They aren't even creative about it. Anyone that starts an account with XXXX TECHNOLOGY CO., LIMITED should be banned right away. NC TECHNOLOGY CO. LTD, AMGT TECHNOLOGY CO., LIMITED, ZG TECHNOLOGY CO. LIMITED. These forums are littered with complaints all describing the same behavior.
Without some better method to vet those that can accept payments on Paypal they will never stop this process. They can just keep repeating it over and over and are making tons even with the crap products they ship. They never have any intention of sending any the products advertised. Regardless of the fact that they technically meet the requirements to skirt the dispute process they are engaging in fraud.
Paypal seems perfectly willing to take the transaction fees from these sellers, deny their members claims, and let them start all over again. To me this makes them complicit to the fraud as they are taking a financial gain from these individuals and hiding behind the dispute resolution policy to shield them. Unless we all take a stand to show them it costs them more from legitimate users than they can make from scammers they clearly have no intention of resolving this problem.
If they did I wouldn't be reading posts from 2018 to today describing this same scam over and over again. Frankly I'm curious if there is grounds for a class action suit. I don't see how terms and conditions can allow you to wash your hands from profiting from felons.