Chinese Consumers Use AI To Fake Damaged Goods And Claim Refunds

Fake photos created using artificial intelligence (AI) are being used to cheat Chinese online shops, especially during the Double 11 shopping festival around November 11. Several sellers have reported that buyers are sending AI-edited images of damaged products to ask for refunds. These cases have raised serious moral and legal concerns, South China Morning Post.

Some customers took real photos of the fruit they received and then used AI to alter it to appear spoiled or rotten.

A shopkeeper selling electric toothbrushes reported that a customer sent him a photo of a rusty toothbrush and demanded a refund. According to the shopkeeper, the complaints he received often defied basic logic.

An employee at a clothing store said that a customer claimed the collar of a one-piece dress was severely frayed and sent an AI-generated photo as proof. The shop noticed unusual lighting on the collar and clear signs of AI editing on the edges of the dress.

In another case, a merchant selling ceramic mugs reported that a buyer demanded a full refund by showing a mug with spiderweb-like cracks. The merchant found this suspicious because their mugs are always shipped in secure packaging. The customer immediately withdrew their request upon requesting a video.

The merchant later tested the photo with an AI detector, which showed a 92% probability that the photo was artificially created.

Many online sellers in China have long been grappling with "sheep shearers", buyers who find flaws in cheap goods and then charge full price without returning them. Sellers say e-commerce platforms often side with buyers and sometimes even accept unfounded refunds.

Furthermore, some sellers also use AI to make their products appear better. One seller told Jiemian News that many shops use AI to create fake models, backgrounds, and even products.

To curb the growing number of AI-related frauds, e-commerce platforms eliminated the "refund only" option in April.

Alibaba Group's Taobao and T-mall have also introduced a system to determine buyers credit scores based on their purchase history, refund patterns, and sellers' feedback.

Additionally, China implemented new regulations on the identification of AI-generated content from September 1, requiring all types of AI-generated content to be marked both explicitly and implicitly.