How to: Get a refund from Butterfly Labs

Summary

A lot of Bitcoin ASIC mining equipment is has been sold by BFL and remains undelivered.
BFL are not honoring refunds and delivery of their products. They have failed to meet any of their deadlines, leading to the joke of "two weeks(tm)".
BFL refuse to give any refunds for undelivered goods which is against US and UK laws. You have a right to cancel your order at any time before delivery, and usually for a period after delivery too.

How to get a refund by Paypal

Paypal does not allow "pre-order" funding and Paypal's TOS state a product must be shipped within 20 days of purchase. All BFL orders have been "pre-orders" so far. This means anything ordered under these terms is illegal under Paypal's terms of service and they can give a refund at any point.
BF Labs Inc are known to Paypal and they have frozen their account permanently so they cannot sell any more by Paypal. There are now dedicated case-workers who will help you outside of the normal dispute resolution process. This is only because they have received so many complaints already and it is clear BF Labs Inc have clearly broken Paypal's rules by raising money for products they cannot deliver in 20 days from purchase date.

The process

BEFORE YOU BEGIN make sure you have opened a dispute by inside your Paypal account FOR EACH TRANSACTION SEPARATELY and say you want a refund because the goods have not been delivered. It will be auto-closed withing a minute if your purchase was over 45 days ago. Make a note of the PP dispute IDs for later along with the individual paypal transaction IDs.
Contact a caseworker directly by email with the specifics of your case.

What to include

Your name
Your paypal email address
Your contact phone numbers (day and evening)
The date(s) of the orders
The transaction IDs and of each and every payment you are disputing to BF Labs Inc.
The paypal dispute IDs.

You must then state that:

the goods were sold on a pre-order basis for delivery in around 2 months
you have not yet received delivery of the goods you ordered and it's been months
they have continuously failed to meet delivery deadlines
they have refused you a refund

Ask for your refund.

Sample Letter

You may use the following letter and adapt it for your particular case:

Subject: Complaint about BF Labs Inc. fraud

I have a complaint to file against a Paypal merchant, 
BF Labs Inc, (office@butterflylabs.com)

This company is now infamous on the internet for defrauding customers. I
have been defrauded of $xxxxxx. They have been selling physical goods on
a pre-order basis (for delivery later than 20 days) against Paypals 
terms of service.

I bought physical goods several months ago and they still have not been 
delivered.

They have constantly delayed delivery which I believe is designed to 
cause the expiry of Paypal's 45 day limit on disputes.

Unfortunately, I believed their lies and gave them the benefit of the 
doubt until recently when I then came to know one of the company's 
founders is a convicted felon who is still on probation for running a 
previous "long con" operation.

I request a refund from BF Labs Inc I was refused saying "all orders are
final" even though I have still not received delivery of my orders.

Here are the transaction ID

[paypal transaction ID list]

I filed claims in the paypal dispute center but they were automatically 
closed because it's outside the 45 day period.

[paypal dispute reference list]

I would be very grateful if you could escalate this issue and refund my 
money because BF Labs Inc. have broken Paypal terms of service by 
selling pre-orders and not delivering within 20 days. 

At this point I am no longer interested in receiving a delivery from
BF Labs Inc, and I just want my money back.

I have been a loyal customer and hope Paypal can protect us all from 
fraudsters like this.

Yours sincerely,

[your name] 
Tel [your phone numbers]

Who to contact

Contact us for the email addresses of the Paypal case workers on bflrefund@gmail.com or via Reddit via http://www.reddit.com/message/compose/?to=tharlam
DO NOT send us your personal information.
After you get your refund, please let us know how much you got back so we can keep tally. This will help inspire and motivate this campaign.

How long does this take?

Please understand Paypal is not obligated to help you after 45 days from purchase date. What they are doing here is exceptional due to the scale of the problem. You may get a response the same day, or it may take several days. They don't work on weekends. Mail them once and wait. You will get a response. Be patient and understand they are fielding A LOT of enquiries.

Other methods

If you paid by credit card directly, you may be able to get a refund from your credit card company by filing a chargeback for non-delivery.
If you paid by Paypal regardless of the funding method (card, bank transfer or part payment), your best bet is with Paypal first.
If you are a new customer, within the last 45 days and want a refund, you should follow the normal Paypal dispute resolution process

Successes to date

164 refunds and counting have been reported at:

http://redd.it/1mju6g
https://bitcointalk.org/index.php?topic=295187.0 (original source)

Finally, for anyone still unsure if they should wait for their BFL deliver, see The Genesis Block Mining Calculator and Evidence of Mail Fraud.

Donate

If this information helps you get a refund you are welcome to make a donation to 1G21KnvRq2NUKfHscVB9v86QQtct7snJvR