Aussie business owner exposes ‘baffling’ refund scamAt first glance it seems like the customer has a valid reason for a refund, but a Queensland business owner has quickly proven that’s not the case at all.Lauren Robinson@L_Robinson964 min readJanuary 30, 2026 - 8:49AMA Queensland business has been left baffled after a customer requested a full refund for a product they claimed arrived damaged and infested with insects. The customer supplied images in an email showing two of The Z Hut’s signature portable sun shades with gashes in the fabric, wood with splintered edges and visible damage to the packaging.At first glance, the images appear to depict severe transit damage. However, business owner Jacob Watson says it wasn’t the damage that concerned him. It was the images themselves.“We first seen it and initially were shocked,” Mr Watson told news.com.au. “But we package them, build them ourselves. There’s absolutely no way it could have been like that.” He didn’t buy the email or the images that were attached to it, claiming it’s “almost like the text is AI as well.”In the email, the customer claimed the “chairs”, despite the items being sun shades, were left “damaged” and “unusable”.“One chair was ripped, and the other had damaged hinges. In addition, the shipping box itself was damaged, and insects fell out of the packaging when it was opened. Due to hygiene and safety concerns, the insects were immediately disposed of,” the email read. Mr Watson notices several inconsistencies between the photo supplied by the customer and his product. Picture: SuppliedMORE: 6 essential workplace skills in the age of AIThe customer said they had only just opened the package when they made the “discovery” claiming they had to dispose of insects, before taking a photo.“Under Australian Consumer Law, customers are entitled to a full refund where goods are received in a damaged or unacceptable condition. As both items are faulty, I am requesting a full refund for this purchase,” they continued. “Due to the presence of insects and the condition of items, I am not comfortable returning the chairs, as I cannot be certain there are no further pests or contamination. I would also like to note that I do not wish to receive replacement items. I am seeking a refund only.” Have your say in The Great Aussie Debate. Take the survey here: Mr Watson says the red flags were immediately waving. He knows the product inside and out. He noticed inconsistencies in the timber frame. “AI’s modified the wood length and it’s made it go way past where it should,” he notes. The rips in the fabric also didn’t stack up. “Our fabric does not look like that, for starters,” he said. He also pointed out that a wooden support beam, which runs along the bottom of the shade, is visible in the genuine product but is completely missing, through the gash, in the customer’s image.To be certain, Mr Watson tested the claim himself by cutting into an older version of the product. “If you were to cut it, it would not look all white underneath the other side. It’s the exact same green on the other side,” he said. A Business has been left baffled by an odd refund request. Picture: suppliedMORE: A guide to the average salary in AustraliaHe’s among the owners concerned that, as the cost of living clamps down on Aussies, scams like this may grow more common, sophisticated and harder to disprove. “If they if he made it less hectic, we like might have been wow s***, how did that happen?” he admits. “The scary thing is… charge backs. They’re pretty powerful for the customer, and if they would submit that... That would be so hard fighting that, saying this is AI”.Beyond the financial hit, it could lead to a stressful burden for business owners forced to prove images false. “Imagine if they didn’t get what they wanted, and then they went public, and they convinced the public this is how it arrived, then that’s your reputation” Mr Watson has since responded to the customer in a professional manner, urging them to take the matter to Australia Post. “We followed up and said if they’re genuinely damaged, the correct procedure is to lodge a formal complaint with Aus Post… we sort of explained to him that he needs to take it into his local post office. They then do a damage assessment on the tracking number,” he explained. “We also said we run all images through a verification thing... we said we’ve it’s picked up that it’s been digitally altered or enhanced.” The customer claims the box had also been damaged. Picture: SuppliedWhat the product looks like in it’s beach day glory. Picture: SuppliedTaking to TikTok, the owner shared the tale with followers who were completely shocked at the refund request. “This is where I’d say, send the ‘damaged’ product back, and once we receive the item, we’ll be happy to refund you in full, however returning the item is at the customer’s expense,” one commenter suggestedMore CoverageMystery behind Aus Open sight solvedClaudia PoposkiCleaner quits after ‘humiliating’ work taskNaomi Kaplan“Look at the way the thread falls compared to the way it’s leaning,” another pointed out. A third said: “People have way too much time on their hands!” “This happened to us. She requested a refund, sent the photo, but the logo was slightly wrong with some minor spelling errors. Called her out and never heard from her again,” another business owner shared. Read related topics:BrisbaneJoin the conversationAdd your comment to this storyTo join the conversation, please log in. Don't have an account? 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