Online shopping scams have become a major concern, with many stores exploiting their customers through deceptive refund policy. A recent incident involving Chase Value, a well-known online retailer in Pakistan, has highlighted the urgent need for stricter consumer protection laws.
A customer shopping at Chase Value encountered an alarming situation when they tried to return an item. Chase Value deducted 5% from the refund amount, despite consumer rights laws prohibiting such deductions for returned items. When the customer protested, insisting that the deduction was against return policies, Chase Value’s agent handed over a misleading document. The document was claimed to be a new circular from the State Bank, justifying the deduction, but upon closer inspection, it turned out to be merely a zakat-related document, having nothing to do with return policies. The customer refused to accept the deduction and continued protesting. In response, Chase Value offered a gift card instead of a cash refund. Shockingly, the gift card was of the same value as the refund, meaning Chase Value simply converted the customer’s rightful cash refund into store credit—which was supposed to be given for free.
Read: Pakistan Braces for Thunderstorms, Heavy Rain, and Snow
This fraudulent approach is a new way for retailers to trap customers into spending their refunded money back on the same platform, rather than returning their money. This is not an isolated case. Many online stores are manipulating return policies to keep customer money by deducting hidden charges under fake policies, refusing to return money to the customer’s bank account, and instead forcing them to accept refunds in their store wallets. Now, in a new deceptive practice, stores are giving gift cards instead of cash refunds, falsely presenting it as a compensation while ensuring the money stays within their business.
Know Your Rights
Customers need to be aware of their rights to avoid falling victim to such scams.
In Pakistan and worldwide consumers have the right to a full refund without unjustified deductions. If they return a product under the store’s policy, retailers cannot impose hidden charges or unnecessary fees unless they clearly mention them before purchase. Customers must receive their refund in the same mode of payment they used for the purchase. Forcing them to accept store wallets or gift cards violates consumer protection laws.
Businesses cannot deceive consumers with false claims. Making misleading statements, such as fabricating a State Bank circular, is a punishable offense under consumer protection laws. Exploiting customers while pretending to offer fair deals constitutes fraud. Consumers can report such fraudulent practices to consumer protection authorities and take legal action against deceptive businesses. They can submit complaints to the Consumer Protection Council of Pakistan or other relevant regulatory bodies.
Gift Cards
If you ever face a similar situation, demand a cash refund and refuse gift cards or store wallet credits if you are entitled to a real refund. Verify any documents provided by the store, especially if they claim it to be from a financial authority. Report scams to the relevant consumer protection court in your country and raise awareness on social media and online forums to warn others about deceptive practices.
The increasing trend of online retailers manipulating return policies and forcing customers into keeping their money within their business is a serious concern. Consumers need to stay informed and demand their rights. At the same time, authorities must take strict action against fraudulent businesses to ensure customer protection. If you’ve had a similar experience with an online retailer, share your story and help spread awareness. The more people speak up, the harder it will be for businesses to exploit customers.
Follow us on Google News, Instagram, YouTube, Facebook,Whats App, and TikTok for latest updates
