I will add a couple of general observations regarding internet practices.
Someone in this thread mention the BBB.
Anyone can file a complaint with the BBB whether they be an online company or a brick and mortar store.
But, two things to consider. No is required to file a response. And many of the brick and mortar stores are members of the local BBB and typically the records are pretty clean. That's one of the perks you get by joining the BBB and the local chamber of commerce...stickers to display in your windows to add a vote of confidence to the consumer and the good ol' boy treatment.
Regarding suspected internet fraud and scams
IN GENERAL (this is not directed to anything having to do with this thread but want to clue folks in on the internet and fraud that you may not know):
There are state and federal agencies in the United States as well as international agencies abroad who will investigate complaints.
Here in the US the two that handle and investigate these types of cyber crimes is the FTC and the FBI.
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
http://www.fbi.gov/
General information:
http://www.usa.gov/Citizen/Topics/Internet_Fraud.shtml
Typically, they do assume a certain percentage as just "sour grapes". But there is a ranking system based on numerous criteria to start raising "red flags" to alert the investigators to potential patterns requiring further investigations.
A former fraternity brother with the FBI was working in this division of Cyber Crime and Identity Theft but I have not been in contact with him for a couple of years. I do know that eBay was in the top spot for complaints and my suspicion is they still are.
There are international agencies like INTERPOL. One I have personally used is the Metropolitan Police in the UK.
http://www.met.police.uk/computercrime/index.htm
Here is something few people know and have argued with me on but until it happens to you, you will see the truth...
PayPal does not refund for domain names. Understand very clearly...PayPal does not refund for domain names.
For those of you that think using a credit card will offer you some protection, understand very clearly...PayPal dictates to YOUR credit card company that chargebacks are not permitted unless PayPal authorizes it.
PayPal views domain names as "virtual goods" and intangible property:
Claims must be for payments for tangible, physical goods that can be shipped, and not all other payments, such as payments for intangibles, for services or for licenses and other access to digital content.
I don't care how it is listed as Goods or what ever, you will have to take my word on this. PayPal refused to refund for 19 domain names that I purchased from one individual in the UK. The credit card issued a credit but was over-ruled by PayPal. In other words,
PayPal enforced their policy onto the credit card company and the credit card company re-billed me for the purchase. I kid you not. Ethical? Very doubtful. Dumped that company in a heartbeat only to find out that is the case with every Visa issued card.
I had little choice in this matter except to contact the authorities in the UK (had already contacted the FTC and IFFC).
It was like reaching out and touching someone and smacking him up side the head.
Supplying all necessary documentation and records and sticking to the facts (not these long boring dissertations that you are reading now) I filed a complaint. After many months of ignoring all emails and no contact, recovering the money or the domains (either one) would have been the most anyone could hope for.
In less than two weeks, the seller of the domain names contacted me and claimed he had thought we had already completed the transaction but he noticed the domains were still in his account and where would I like them transferred?
Amazing.
So, there are options. Personal experience tells me the BBB sucks and is a paid membership. PayPal screws you on domain purchases gone bad and will not even investigate. And you have options as indicated above when it comes to reporting internet crime and fraud.