vexangel , a quick way of recovering your money would be to contact your credit card company you used for the paypal payment, and filing a chargeback. Paypal can't do anything, and very likely you'll get your money back.
Sadly there is nothing much anyone can do against ebay or paypal, they earn loads of insertion and final value fees from each sales, probably in the millions each day just on these hacked players. And pretty much i guess they would not want to stop the sellers from doing so.
Taking legal action against ebay and paypal would be extremely costly, and again i guess no one wants to pay the huge legal fees just for a cheap $50 player (unless of course the person is a multi-billionaire).
Also, if i'm not wrong, if you want to file a lawsuit against the seller themselves, you'll probably need to engage a lawyer in China, this again would cost a bomb.
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Why are clones called MP4 Players, when they don`t play .MP4 at all?
It`s like an MP3 Player which plays Music CDs only.
T39 doesn''t sound as good as my T29
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