Customer product return question

[dickneedsadvice]

A customer purchased product from an online merchant.
The product went on sale after the purchase.
The customer called the merchant and got a price reduction on the product.
Subsequently, the customer decided that they did not want the product.
They went into a physical location of the online merchant and returned the product.
The merchant refunded the original price of the product to the customer (effectively, the customer received more money than they paid to buy the product, because they got the original price as well as the price reduction back from the merchant). The customer did not notify the merchant of this fact.
Is this considered fraud? Does the customer have any liability in this?

Will appreciate a lawyer's advice.
Thank you.

 

[Just Blue]

A customer purchased product from an online merchant.
The product went on sale after the purchase.
The customer called the merchant and got a price reduction on the product.
Subsequently, the customer decided that they did not want the product.
They went into a physical location of the online merchant and returned the product.
The merchant refunded the original price of the product to the customer (effectively, the customer received more money than they paid to buy the product, because they got the original price as well as the price reduction back from the merchant). The customer did not notify the merchant of this fact.
Is this considered fraud? Does the customer have any liability in this?

Will appreciate a lawyer's advice.
Thank you.

We deal with US law only and never do homework.

 

[dickneedsadvice]

We deal with US law only and never do homework.

Sorry, I did not follow. What did you mean by that? Thanks

 

[Just Blue]

Sorry, I did not follow. What did you mean by that? Thanks

As you didn't post the state as required we can only assume you are not in the US. And your question presents as homework. Which we don't do.

 

[Taxing Matters]

Is this considered fraud? Does the customer have any liability in this?

That depends on the applicable state law (and you did not mention the state) and exactly what happened when the customer returned the item. But it is very likely criminal fraud if the customer lied when returning the item and told the clerk he paid the higher price for it. Misrepresentation is the heart of fraud — it is that false/misleading statement that creates a fraud.

 

[dickneedsadvice]

That depends on the applicable state law (and you did not mention the state) and exactly what happened when the customer returned the item. But it is very likely criminal fraud if the customer lied when returning the item and told the clerk he paid the higher price for it. Misrepresentation is the heart of fraud — it is that false/misleading statement that creates a fraud.

The purchase was made in California, but online.
When the customer returned the item, they did not tell anything to the clerk. The clerk looked up the item using the online order number (and the sticker on the merchandise probably), and refunded the amount the customer had paid originally.

The issue is that there is a disconnect between the merchant's online systems and its retail store systems. They did not recognize that the online system had given the customer a price reduction (refunded the price reduction) prior to the customer returning it.

Is the customer liable for the merchant's systems not talking to each other, making a mistake?

 

[LdiJ]

The purchase was made in California, but online.
When the customer returned the item, they did not tell anything to the clerk. The clerk looked up the item using the online order number (and the sticker on the merchandise probably), and refunded the amount the customer had paid originally.

The issue is that there is a disconnect between the merchant's online systems and its retail store systems. They did not recognize that the online system had given the customer a price reduction (refunded the price reduction) prior to the customer returning it.

Is the customer liable for the merchant's systems not talking to each other, making a mistake?

Yes, because you did not speak up and tell them that they had made a mistake,

 

[dickneedsadvice]

Yes, because you did not speak up and tell them that they had made a mistake,

Thank you for your response.
What if the customer did not notice that they had been refunded the full amount if it was an electronic and not a cash transaction? Is that a viable defense?

How would the Retailer proceed? Are they required to consult with the customer to work this out? Does the retailer have to prove in a court of law that a fraud occurred if this is likely to be fraud?

 

[justalayman]

The purchase was made in California, but online.
When the customer returned the item, they did not tell anything to the clerk. The clerk looked up the item using the online order number (and the sticker on the merchandise probably), and refunded the amount the customer had paid originally.

The issue is that there is a disconnect between the merchant's online systems and its retail store systems. They did not recognize that the online system had given the customer a price reduction (refunded the price reduction) prior to the customer returning it.

Is the customer liable for the merchant's systems not talking to each other, making a mistake?

Look at this as the simple matter it is;

The customer received money they were not entitled to. It doesn’t matter that it was due to the lack of knowledge of the refunding entity. The fact customer concealed the fact they had already received a partial refund is the basis of the fraud.


There are many people prosecuted for this. Most often it is done by purchasing merchandise while on sale and returning it after the sale claiming they lost the receipt.

 

[justalayman]

Thank you for your response.
What if the customer did not notice that they had been refunded the full amount if it was an electronic and not a cash transaction? Is that a viable defense?

How would the Retailer proceed? Are they required to consult with the customer to work this out? Does the retailer have to prove in a court of law that a fraud occurred if this is likely to be fraud?

No they are not obligated to attempt to work it out but most will.

Once the customer is aware of the error, failing to make the correction proves criminal intent.

 

[dickneedsadvice]

Look at this as the simple matter it is;

The customer received money they were not entitled to. It doesn’t matter that it was due to the lack of knowledge of the refunding entity. The fact customer concealed the fact they had already received a partial refund is the basis of the fraud.


There are many people prosecuted for this. Most often it is done by purchasing merchandise while on sale and returning it after the sale claiming they lost the receipt.

Thank you.
In such a situation, how should the customer proceed?

 

[dickneedsadvice]

No they are not obligated to attempt to work it out but most will.

Once the customer is aware of the error, failing to make the correction proves criminal intent.

Thank you.
In such a situation, how should the customer proceed?

 

[justalayman]

Contact them and tell them you received too much in a refund and ask them how to settle up

 

[dickneedsadvice]

Contact them and tell them you received too much in a refund and ask them how to settle up

Thank you.

 

[HighwayMan]

In such a situation, how should the customer proceed?

The customer needs to come here and ask his own questions.