A man from the La Chaudière-Appalaches region purchased a monitor in August 2021 on the Samsung Electronics Canada website. The cost: almost $2000. A few days later, he received a notice 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 is not his.
Denying any responsibility, Samsung refuses to reimburse the purchase. Convinced he was the victim of fraud and that his delivery package was stolen, the man requested a chargeback from Capital One, the issuer of his Mastercard credit card. Although he is within his rights under the Consumer Protection Act (LPC), Capital One rejects his request.
Chargeback, an obligation for online purchases
However, as the Small Claims Court points out in its judgment, an issuer has two obligations to respect when it receives a chargeback request:
● Acknowledge receipt within 30 days.
● Carry out the chargeback of the amount debited to the credit card account and cancel all charges charged to this card account in relation to the contract concluded remotely.
Chargeback : This protection allows you to be reimbursed by your credit card issuer when the merchant refuses to do so within 15 days following sending your cancellation notice for an online purchase. This reimbursement must be made no later than 90 days following receipt of the request or within a period corresponding to two complete statement periods.
Capital One’s role is not to play referee between the plaintiff and Samsung, adds the court responsible for the case. “If Samsung considers itself harmed by the chargeback, it may take legal action against the consumer,” specifies the judgment dated March 30, 2023.
Thus, Samsung and Capital One both committed a fault according to the court, which caused damage to the consumer. On the other hand, the judge established that full responsibility lies with Samsung, requiring that the Korean company reimburse the monitor, pay additional compensation to the plaintiff and pay legal costs.
No legal obligation for in-store returns
Although there are many reasons to request a refund for a purchase made online, there is no obligation in the CPA requiring a merchant to accept the return of non-defective goods in store. On the other hand, the merchant must respect its in-house exchange and refund policy. In addition, this policy must be clearly displayed in its store, on its website or on the receipt.
In addition, with regard to a defective product, the merchant who sold you this good (or the manufacturer) has the obligation to repair the good, exchange it or reimburse you.