Is it true that if my charger cable is defective and not abused Apple will exchange it?

It's under the same warranty included with your iPod Touch. If that's what you're asking, of course it will be replaced within the terms of that warranty.

Bring the cable, your iPod Touch, dated sales receipt or other proof of purchase to an Apple Store, and they will tell you your options.

If you are asking about the USB power adapter exchange program the details are here:

http://www.apple.com/support/usbadapter-takeback/

A replacement is $10 if they deem your charger eligible for the program.

Hi John,

the store I found on the takeback site you listed (under Apple authorized Service providers) told me they will echange anything except look alike chargers. I gave in three chargers, look-alike and non-lookalike. They duly registered the serial numbers on the ipad and iphone and said they first have to "book it in" before they can do the exchange. They booked it in ON the October 18, 2013, so I get a call a few days later saying they looked at the chargers but "they are fine".

The takeback site doesn't actually say the charger first has to be deemed eligible, in fact it clearly states: "We are offering this special takeback program for any USB power adapter". Further, "We will ensure that these adapters are disposed of in an environmentally friendly way" seems to be the only stated reason to book them in, not to evaluate eligibiity. The spirit of the takeback in fact is spelt out on the said page when it mentions: "Apple Retail and Apple Authorized Service Providers cannot advise you on the authenticity or safety of your adapter", meaning there is no evaluation just a takeback.

A takeback which didn't happen, which hasn't made me safer, and only creates mistrust and an air of deception.

Please advise, what is the service provider meant to do in my case?