Earlier quoted context omitted.
This is true for obvious scams (e.g. a blender that breaks in a week). However, for subtle scams people often don't realize the scam. For instance, many people won't hit the actual size limit of the USB and won't realize it's not 1TB. In these cases, Amazon does not take a reputation hit for these individuals due to them being unaware of the scam. Only the technically inclined or those who research before buying will…
A typical user might not recognize the nature of the scam. But they very easily could realize that the drive they bought from Amazon is defective. 8GB is not that much space (particularly when the OS thinks it has 1TB to play with). When the firmware runs out of real space to play with, it needs to start dropping data, and that is very visible.
Only if you are actively verifying the data. Im pretty sure most people would just look at a file listing and consider it stored.