[Nextgrid]

They don't. The business model relies on most people not challenging it or not being aware that chargebacks are a thing.

Similarly, this may not fly in court either, but again the business model relies on most people not escalating all the way up (and in their case, they won't pursue it either, as they'd lose more in legal fees even if they ultimately win the case).

Nasty business models like this won't survive if people stood their ground and knew their rights better.