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I wonder if the chat transcripts form legally binding contracts?
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"Legally binding" is largely irrelevant. My PaperWhite cost me $89 on sale. It is not reasonable to sue Amazon and try to force them to give me a new one rather than a refurb. How much would that cost in legal fees and time? Ridiculously more than the PaperWhite itself. It's not sound financial judgement to go down that road.
Here in the USA our states have attorney generals. Kind of like a state legal department that can sometimes help consumers. I don't know if you have an equivalent in the UK. You could report Amazons actions as fraud and see if the attorney general would go after them. You wouldn't have to pay for that.
The easiest course of action is just to accept your losses on the PaperWhite. Then place a few posts on social media describing your ordeal to get the Social Justice Warriors fired up, and hope they start posting on FaceBook, Twitter, Yelp, and all those places they like to waste their unlimited time on when they get righteously offended. Maybe their viral posts will get Amazon's attention.