A man from the La Chaudière-Appalaches region purchased a monitor on the Samsung Electronics Canada website in August 2021. The cost: almost $2,000. A few days later, he received a message from FedEx confirming that the package had been delivered to him. The problem is that he never received the package and the signature on the delivery note was not his.
Samsung denies any responsibility and refuses to refund the purchase price. Convinced he had been the victim of a scam and that his delivery package had been stolen, the man filed a chargeback with Capital One, the issuer of his Mastercard credit card. Despite exercising his rights under the Consumer Protection Act (LPC), Capital One denies his application.
Chargeback, a requirement for online purchases
However, the Small Claims Court notes in its ruling that an issuer has two responsibilities when receiving a chargeback request:
● Confirm receipt within 30 days.
● Complete the chargeback of the amount debited from the credit card account and cancel all debits to this card account in connection with the distance selling agreement.
Chargeback : This protection allows you to receive a refund from your credit card issuer if the merchant refuses to do so within 15 days of sending your cancellation notice for an online purchase. This refund must be made no later than 90 days after receipt of the request or within a period equal to two full billing cycles.
Capital One's role is not to act as an arbitrator between the plaintiff and Samsung, the court hearing the case adds. “If Samsung sees itself harmed by the chargeback, it can take legal action against the consumer,” says the ruling dated March 30, 2023.
According to the court, both Samsung and Capital One had committed an error that caused harm to the consumer. On the other hand, the judge noted that full responsibility lies with Samsung and demanded that the Korean company reimburse the monitor, pay additional compensation to the plaintiff and cover legal fees.
There is no legal obligation to return items in store
Although there are many reasons to request a refund for a purchase made online, there is no obligation in the CPA that requires a merchant to accept the return of defective goods in-store. On the other hand, the merchant must respect its internal exchange and refund policies. In addition, this policy must be clearly visible in its store, on its website or on the receipt.
In addition, in the event of a defective product, the retailer who sold such goods to you (or the manufacturer) is obliged to repair, exchange or refund the goods to you.
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