Letter for Claims Against Online Retailer (PayPal)

Letter for Claims Against Online Retailer (PayPal)

  • Applicant: Mr. Chen
  • Nationality: American
  • Applying for: Claims Against Online Retailer (PayPal Refund)
  • Time: 2 days
  • Challenges:
    • PayPal twice found in favor of the seller.
    • Seller not only refused a refund but kept the shoes.
    • Seller filed a police report and because of this, Mr. Chen needed legal representation


Mr. Chen proudly describes himself as a “Sneakerhead”. The thirty-year-old sales executive requires little prompting to show you his closet full of nearly 100 pairs of rare, deadstock, vintage, and limited-edition basketball shoes. While some of his friends believe his hobby is a silly enterprise, Mr. Chen regards the shoes as a legitimate investment. According to Forbes, the aftermarket sneaker exchange has become a billion-dollar industry. Like other Sneakerheads, Mr. Chen spent his spare time attending Sneakerhead events, swap meets and browsing online retailers searching for one-of-a-kind editions of shoes like Nike Air Jordans, or Adidas Yeezys. While on eBay Mr. Chen came across a pair of Air Yeezys in his exact size of 7.5. The posting showed a photo of the shoe displayed on top of the box with the label reading size 7.5. The number that gave Mr. Chen pause wasn’t the shoe size but the cost. The listed price read 970 euros. That was the equivalent of $1,065 US dollars. That would be the most he’d ever paid for a pair of shoes, but finding Air Yeezys in his size was a very rare opportunity. Mr. Chen figuratively plunked down the cash via PayPal. He’d always used PayPal because he believed they would protect his purchase. He would be wrong.

A few days later the package arrived. Feeling a quickening in his pulse and a thrill in his chest, Mr. Chen opened the box. Inside, he found the Air Yeezys, but they were size 7, not 7.5! And upon closer examination, the shoes were missing the lace locks they’d shown in the photo. Frustrated, Mr. Chen took photos of the unboxed shoes and then mailed the shoes back with a request for a refund. Later, the seller claimed Mr. Chen returned the shoes in a damaged condition and refused to refund the money. At first, Mr. Chen contacted eBay, but they referred him to PayPal. PayPal informed Mr. Chen that they would not protect his purchase and found in favor of the seller. Mr. Chen refused to accept PayPal’s decision and filed a second complaint. PayPal once again found in favor of the seller and informed Mr. Chen the seller had filed a police report and any further action would require legal counsel. Mr. Chen didn’t have an attorney and if he did it would probably cost as much to hire one as what he’d lost in the purchase of the shoes. So, there he was, out 1,065 dollars and he didn’t even have the shoes in his possession. He wanted to give up, but fortunately, a friend referred him to Tsang and Associates.



For a small fee, Tsang and Associates consulted with Mr. Chen. The firm empathized with his frustration at being dealt so unfairly by PayPal. Regular folks don’t have attorneys on retainer to handle relatively small but impactful financial grievances. Within a day, Tsang and Associates drafted a letter to PayPal explaining how Mr. Chen had been unfairly treated. Not only had he been sold a misrepresented product, he was out the money and didn’t even get to keep the shoes. The letter quoted the United Nations Convention on Contracts for International Sales of Goods. Under articles 25-88, goods the seller provides “must be the quality, quantity, and description required by the contract, be suitably packaged and fit for the purpose. If there is a breach by the seller, the seller is required to refund the price paid as well as the interest to the buyer from the date of payment.” Mr. Chen proved the transaction was Significantly Not as Described (SNAD) by including comparative photos of the advertisement showing the size of 7.5 and a photo of the box he received showing size 7. Other photos revealed the condition of the shoes and the missing lace locks.



Within two weeks, PayPal agreed to refund the $1,065 back into Mr. Chen’s bank account. Mr. Chen was grateful for the in-depth service that they provided him for such a small fee. Sometimes having the appropriately phrased letter with legal justification can make a world of difference. In this case, PayPal had twice supported the seller until they received a well-crafted legal response. Tsang and Associates is proud to have assisted Mr. Chen in the rightful return of his money and to make his investments.