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Old 07-01-2009, 05:10 PM
LaurensRS LaurensRS is offline
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Join Date: Jul 2009
Posts: 1
Default DHgate violates Chinese and US laws

DHgate advertises itself as an escrow agent providing safe and secure transactions between American buyers and Chinese sellers. Its CEO gives interviews and sends out press releases about how DHgate stamps out counterfeiters, imitators, and the like. There is a so-called 'dispute' center. Also, all payments from the US to DHgate in China have to be made via PayPal and PayPal advertises guarantees as to use of funds ('unauthorized transactions') and receipt of products that were not those contracted-for. In my situation, I selected some known name brand products (Odelia jewelry), Tahitian pearls, sapphire, and tanzanite. As an investor in gems and settings, I know that most jewelry is made in South-East Asia, eg, stones are shipped to and cut in Thailand, then sent to China for setting in mounts and castings made in Thailand and China. When I received the items, I ran a series of tests on them and each and every item was fake: synthetic materials, glass, paint, varnish. I immediately emailed the evidence to DHgate and opened disputes. The sellers for the most part ignored me; one called me names; another offered a 'very good gift we do good business in future we be friend.' Ultimately, though, DHgate ignored my counteroffers, wouldn't let me return the goods (there are inexpensive ways of shipping to China), didn't read two memos on Chinese law that I prepared, and took money for itself and its sellers, returning me pennies on the dollar. I have written to some Chinese agencies so it's too soon to see if I'll receive aid there. I have also sent DHgate what's called a demand letter stating that since it had breached its agreements to be an escrow agent, to act neutrally, to look at evidence, etc., and since it's own sellers had breach agreements to send contracted-for items, that I would file suit to enjoin future business activities and for damages. I have had not response yet. As for PayPal, it originally just said it could care less, then removed my dispute emails from its resolution center, then upped me to emailing the executive center, and that center has so far done nothing even though the release of funds was an unauthorized transaction and the underlying sales were not as contracted-for. What we can do is join together for a class-action suit if there are enough of us; the best places to file are either in Los Angeles or, best, New York City (federal court, 2nd Cir.; best with regard to commercial matters). In the meantime, I would advise that you not purchase anything at all from DHgate.

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