Sadly I don't think PayPal is listening to, or protecting victims of these fraudulent sellers. They have not responded or advised of updates on any policy change to provide protection against these types of scams and therefore continue to aid fraudulent merchants. For this part PayPal is aiding these fraudsters in their scams and unsuspecting buyers are not only being ripped off but are being penalised further financially by having to pay for the returned fake item, which also poses the threat, with no guarantee, that an item returned to the return address given will actually be acknowledged as being returned, leaving the buyer further out of pocket. These are scammers, they have already been fraudulent in their dealings and have gone to great lengths to get away with it because of PayPal's policy, so how can they be trusted to acknowledge the returned item has arrived back at the return address given? A lose - lose situation for the unsuspecting buyers who have already been conned out of their money through false advertisement. If PayPal was genuine about protection of their customers they would change their return policy regarding fraudulent advertisement and make the seller making the false claims, or sending fake and inferior products pay for the return of the wrong product sent...
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