I had bought many items there before. It was a painful lesson. I will never again use PayPal and only deal with people who will accept credit cards so I have some protection. Why not charge back your purchase through your credit card company? As far as the law is concerned, you were paypal's customer, not the scammers (i.e., you paid paypal, not the scammer). You didn't get your stuff and paypal is responsible. No agreement between you and a merchant (paypal) can waive your rights to charge back a transaction through your credit card company.
"You didn't get your stuff and paypal is responsible. No agreement between you and a merchant (paypal) can waive your rights to charge back a transaction through your credit card company."
The problem with this is that you did get what you paid for. You contracted with Paypal to deliver funds. They delivered them... ie: you got what you paid for. Paypal used this arguement to keep from accepting chargebacks from consumers who were defrauded by JC Morris Co. BTW, the JC Morris incident is by FAR the largest internet fraid, over $1.5M. For some reason, the media hasn't caught on to it yet. The owner of the company has had himself declared incompetent in order to escape criminal and civil charges. You can read all about it here:
http://www.fatwallet.com/forums/messageview.cfm?start=2240&catid=24&threadid=53925