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Absolutely, I agree that demanding a partial refund that is not owed under threat of negative feedback is extortion, yes. However if a refund is owed then stating that negative feedback will be given if the refund is not made is a legitimate and appropriate tool because refunding when appropriate is part of the seller's responsibility.
Buyers:The buyer isn't allowed to threaten to use Feedback or detailed seller ratings in an attempt to force a seller into providing:- Goods or services that weren't included in the original item's description or purchase price.- A return, refund, or replacement item.