PayPal Refunds – Counterfeit Items Policy Change Nov 01 2010. What Does This Mean For Fake Flash Memory? MP Players, USB Flash Drives, Memory Cards? Hacked Memory Awareness Growing.

It’s no secret many consumers have been frauded with purchases of fake flash memory items on eBay and internet sites. Frequently buyers and resellers purchase with PayPal. Attempting to get a refund from PayPal has been a nightmare for some. Often buyers are ordered to return the items to the fake flash memory seller, or lose their claim. The problem is, for fake and counterfeit items, it is usually illegal to use the postal system to send or receive these items. All this is changing.

From SOSFakeFlash’s experience, items returned to fraudulent sellers on PayPal orders, are simply resold to the next unsuspecting buyer. Frequently the original buyer is not refunded as the seller will claim the item was never received back. In other cases, the address provided by the seller is also fake. On occasion a buyer is selected for additional aggravation – having to prove the item is a counterfeit. When that happens, the testing results of H2testw is not accepted, nor are photo’s documenting the flash memory chip serials. Instead the buyer is left confused, what to do? They must visit a computer shop and plead their case for assistance. When the local store provided an attestation on company stationary the item is indeed a fake and false capacity, the buyer can now claim a refund. Unfortunately, it is a lot of work and the time window provided not long enough. It has led to many frauded buyers not being refunded. All that is about to change, starting in November 2010, PayPal is changing it’s policy.

The new PayPal policy sent in to SOSFakeFlash announces:

Effective Date: Nov 01, 2010

“13.3 What type of payments are eligible for re-imbursement under
PayPal Buyer Protection?

“Sellers: As a seller you are liable to PayPal if you lose a Claim
from a buyer with a PayPal account registered anywhere in the world.
This includes, without limitation, where you sell to a buyer who is a
Full Programme User and the buyer files a SNAD Claim, in which case
you will generally be required to accept the item back and refund the
buyer the full purchase price plus original shipping costs. You will
not receive a refund on your PayPal fees. If you lose a Significantly
Not as Described Claim because the item you sold is counterfeit, you
will be required to provide a full refund to the buyer and you will
not receive the item back (it will be destroyed).”

SNAD – Significantly Not as Described

So sellers who sell items significantly not as described, are going to lose their fees. They must not only refund the selling price but also the original shipping costs to the buyer. No room for bargaining with a buyer. This also applies to the “counterfeit” category.

Fake Flash Memory and Counterfeit Flash Memory are used interchangeably by buyers but there is a difference. Generic flash memory (non branded) would fall clearly under SNAD.

Items stamped, packaged or carrying a brand name will fall squarely under the definition of counterfeit. This is a big win for frauded buyers. PayPal will no longer play email games demanding the item be returned to a seller. It does carry a requirement the item is to be destroyed. Many buyers have been refunded when they sign an attestation confirming they have destroyed the memory card, mp player or usb flash drive. This is fair and it is reasonable. It also means buyers will no longer have to struggle with the dilemma of sending the item back (usually about 1/2 the cost of the original purchase) and gamble they will truly be refunded and no longer breaking the local postal laws in their country.

For brand names such as Kingston, Sandisk, Sony, Transend and Corsair it is a victory forcing PayPal and internet sites to take responsibility. PayPal may be powerful, but flash memory companies are also powerful and they are fed up with damage to their brand names for counterfeit items that harm consumers.

Our advice to you the buyer, is to continue to hold PayPal accountable, not to accept any excuses if you have been frauded with the purchase of fake flash memory. If you paid with a credit card, you have an additional option if PayPal refuses to refund you – contact the credit card company and report the purchase as fraud, most will refund you as they are concerned for the safety of their customers and encourage internet shopping.

For fraudulent sellers of usb flash drives, mp players and memory cards, this new PayPal policy is not one they will like. It means they will be forced to refund in FULL, they will not get their merchandise back to resell. For eBay resellers registered outside of Asia, many will learn a very painful lesson as buyers will no longer be returning items. Hopefully it will cause sellers to carefully research their intended product before offering for sale.

Will this new PayPal policy really make a difference?

SOSFakeFlash and the FrankenFlash project sites don’t know. It is not going to be of much consolation to those who purchased before November 2010. It could have the possibility to offer very sharp teeth against fake flash memory sellers and begin protecting PayPal members, for real.

Ebay watchdog: A warning to ebay users on fakes and poor paypal protection services

Let us know if this new policy is working for you and if PayPal did protect you.