This is what I think I know. I'll be reading up to see if or any holes surface in my theories.
-First, English consumer laws give you the right to request a refund up until 7 days of receiving your item (no breach of contract required). Only way out is for Alpha to not have the money A.K.A filling for bankruptcy, which in England it's even more trouble if you're already "labelled" a business, is not that easy or even worth it (unless they plan to grab the money and move to another country). I honestly think they are relying on people to believe their statements and not take any action. And that's how they'll dodge refunding.
Sorry I disagree. Bankruptcy is the easiest exit strategy for this outfit, there is no "trouble" as you say for them doing this. They have no assets so there is nothing to divide up and hand out to their creditors. They may have difficulty getting credit and won't be able to be a company director, but many use family members to front new start-ups.
I've seen it done.