Actually your proposal is even dumber because you defrauded a store *in your own state* and *without the protection of Visa/Mastercard* to back you up, plus your standing *in their territory* where a security guard can grab you and drag you into a backroom for interrogation.
[blah blah blah]
Escalating the dumbness scale:
That makes you guilty of Interstate Wire Fraud under 18 U.S.C. Â 1343, a crime investigated by the FBI and prosecuted in a United States Federal Court. Not a trivial offense.
- U.S. post office delivery confirmation ("Yes we returned the console")
Congratulates, you've now committed Mail Fraud, which is the parent of Interstate Wire Fraud, and carries the same penalties.
- the law itself which states - if the consumer can provide proof-of-return, then the business must refund the money
What specific law are you referring to? There's no law I'm aware of that requires a business (or any other entity) to refund your money for the return of something other than what they sold you. Furthermore, a business is able to stipulate terms limiting or forbidding the return of merchandise, impose penalties and fees or other conditions.
There is no legal right to a refund.
- The credit card company
That is the federal crime of Bank Fraud, also described in U.S.C.Title 18. A credit card company will not just accept your word for a dispute. They will also contact the merchant and decide on the information and evidence provided by the difference parties, and always with respect to the law. If the merchant responds that you returned a used, out-of-warranty, non-functional item in place of the new item you received, they will very likely rule in favor of the merchant.
And if you used Paypal to make the credit card payment, then that's yet another layer of protection between you and the megacorp.
PayPal protection only applies for items purchased from eBay. Otherwise, PayPal doesn't want to get involved.
And now, if anyone participating in this discussion actually takes your advice, you are both also guilt of conspiracy to commit fraud.