Report both the seller, and Paypal to your states attorney general. Also if you used a credit card through paypal dispute the charge to paypal through your credit card company. Paypal is being very complacent by enabling these fradulent scammers. Even if you sent it back, what would happen is that the address they would give you in China would be wrong. So then the seller can tell Paypal they never received the return item back and Paypal will find in their favor again anyway. These scams have been going on for months, there's hundreds of posts both here and on other sites (Nest/Google is a popular site they spoof) even the BBB has had articles/reports of this exact scam manipulating Paypal's policies to fraudulently take advantage of buyers. It's hard to believe Paypal is so incompetent they are not aware of it, yet they are still allowing these scammers to work their policies while buyers are victims.
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