Website sold me a product at the wrong (lower) price

Forums › Off topic › Website sold me a product at the wrong (lower) price - my rights?

Satch

1985 posts

Uber Geek

#78582 4-Mar-2011 13:56

Hi,

I’ve just experience the following situation, and would like some views on where I stand in terms of this matter.

I visited a NZ technology reseller’s website this morning and noticed that they had an item on sale listed at approx $113.64 + GST, discounted according to their site from a usual RRP of $999 + GST. A quick search on Pricespy found the same item for $606 including GST lowest price.

The live stock balance at the time I placed the order was 18, so I placed an order for three of the said items (at 9:19am this morning), and got a Tax Invoice/Receipt shortly after by email for the three items plus shipping. My credit card was charged for the cost of the goods at the same time too.

I noticed after I received my receipt, that the stock balance had reduced to 15 (18 less the 3 I had purchased). A little while later it reduced again to 13. Shortly before lunch, I checked the listing again, and noticed that the price of the product had been increased to $624.61 + GST, and the stock balance went up to 19.

I received an email at 11:54am this morning from the company I purchased the items from, and it said that unfortunately the supplier had run out of stock and that my credit card was refunded for the purchase. It was signed off with “Sorry about that”.

So I rang the company involved about my order, and was told that their supplier had no more of this particular product, so they could not honour the sale. I mentioned that I noticed the price had increased and the stock balance had gone up on their website, at which time I was then told that their supplier had no stock of the particular product “at the price I had ordered them at”, and will not honour my order.

Given that I purchased the product at the advertised price, was charged for the order, and received a Tax Invoice/Receipt, what are my rights in terms of expecting them to honour this sale? I would assume that I had no leg to stand on had they not accepted my order, charged me, and sent me a receipt, but given they did all that doesn’t that mean the sale if final?

Cheers.

1 | 2 | 3 | 4

20574 posts

Uber Geek

Trusted

Lifetime subscriber

#445501 4-Mar-2011 14:09

Retailers don't have to honor obvious mistakes, and that people who take advantage of them have no rights. I'm pretty sure that they can change their mind and refund your money any time before delivery without any reason at all.

Regs

4066 posts

Uber Geek

Trusted

Snowflake

#445503 4-Mar-2011 14:10

as long as they didnt set out to mislead you in the pricing, they can reverse a transaction for an 'honest mistake'.

Sales Engineer
Snowflake
www.snowflake.com

about.me/nzregs
Twitter: @nzregs

Regs

4066 posts

Uber Geek

Trusted

Snowflake

#445504 4-Mar-2011 14:14

See the consumer site regarding pricing mistakes:
http://www.consumer.org.nz/reports/fair-trading-act/common-problems

they probably should have just told you it was a screw-up though, instead of coming up with a ridicuous story for an explanation!

Sales Engineer
Snowflake
www.snowflake.com

about.me/nzregs
Twitter: @nzregs

Satch

1985 posts

Uber Geek

#445513 4-Mar-2011 14:34

Regs: See the consumer site regarding pricing mistakes:
http://www.consumer.org.nz/reports/fair-trading-act/common-problems

they probably should have just told you it was a screw-up though, instead of coming up with a ridicuous story for an explanation!

Thanks for the input so far guys. If they had come clean and said that it was a pricing mistake, then I probably could have accepted that. But the fact they are maintaining that it was a correct price, but "sold out" after accepting my order and charging me, is a completely different situation.

So as far as I am aware (and am being told by the company), this wasn't a price error (although it is kinda obvious it was).

If I have a leg to stand on in this situation, then I am keen to pursue it. But I also don't want to waste too much precious time on it either...

timmmay

20574 posts

Uber Geek

Trusted

Lifetime subscriber

#445516 4-Mar-2011 14:42

You have no leg to stand on. If you press it they'll just say it was a pricing mistake, like they should've done to start with. I'd tell them they should've been honest rather than lying then move on.

Satch

1985 posts

Uber Geek

#445522 4-Mar-2011 14:56

timmmay: You have no leg to stand on. If you press it they'll just say it was a pricing mistake, like they should've done to start with. I'd tell them they should've been honest rather than lying then move on.

After reading the information that Regs pointed me to regarding pricing mistakes, it states that a retailer can refuse a sale due to a pricing mistake. It says nothing about if they accept the sale first.

So I decided to call the Citizen's Advice Bureau to see what they had to say on the matter. They said that the Tax Invoice/Receipt I received, along with the payment from my credit card, constitutes a legal contract for sale of the goods, and that I could take them to the small claims tribunal if I could not convince them to honour the sale.

So it appears as if I do have a leg to stand on. It is a matter of weighing up taking action vs missing out on goods to the value of $2,150 for only $400. Hmm.

Zeon

3916 posts

Uber Geek

Trusted

#445524 4-Mar-2011 15:00

Satch:
timmmay: You have no leg to stand on. If you press it they'll just say it was a pricing mistake, like they should've done to start with. I'd tell them they should've been honest rather than lying then move on.

After reading the information that Regs pointed me to regarding pricing mistakes, it states that a retailer can refuse a sale due to a pricing mistake. It says nothing about if they accept the sale first.

So I decided to call the Citizen's Advice Bureau to see what they had to say on the matter. They said that the Tax Invoice/Receipt I received, along with the payment from my credit card, constitutes a legal contract for sale of the goods, and that I could take them to the small claims tribunal if I could not convince them to honour the sale.

So it appears as if I do have a leg to stand on. It is a matter of weighing up taking action vs missing out on goods to the value of $2,150 for only $400. Hmm.

While legally you are in a sales contract, is it moral to rip them off for an honest mistake?

Speedtest 2019-10-14

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

Satch

1985 posts

Uber Geek

#445534 4-Mar-2011 15:12

Zeon: While legally you are in a sales contract, is it moral to rip them off for an honest mistake?

What mistake? They have not admitted to making a mistake. They have told me it was a supply issue, meanwhile updating the price on their site and upping their stock count, before removing the item completely after a second call from me saying that I was going to take advice.

Who is being immoral here?

sbiddle

30853 posts

Uber Geek

Retired Mod

Trusted

Biddle Corp

Lifetime subscriber

#445535 4-Mar-2011 15:14

Zeon:
Satch:
timmmay: You have no leg to stand on. If you press it they'll just say it was a pricing mistake, like they should've done to start with. I'd tell them they should've been honest rather than lying then move on.

After reading the information that Regs pointed me to regarding pricing mistakes, it states that a retailer can refuse a sale due to a pricing mistake. It says nothing about if they accept the sale first.

So I decided to call the Citizen's Advice Bureau to see what they had to say on the matter. They said that the Tax Invoice/Receipt I received, along with the payment from my credit card, constitutes a legal contract for sale of the goods, and that I could take them to the small claims tribunal if I could not convince them to honour the sale.

So it appears as if I do have a leg to stand on. It is a matter of weighing up taking action vs missing out on goods to the value of $2,150 for only $400. Hmm.

While legally you are in a sales contract, is it moral to rip them off for an honest mistake?

If they had owned up and admitted it was a mistake then I'd agree with you. The fact the retailer didn't own up to that and instead claimed the wholesaler had no stock IMHO makes them fair game!

jparadisum

3 posts

Wannabe Geek

#445537 4-Mar-2011 15:17

Agreed. Even if it were an honest mistake, it was also an honest purchase. So to accuse the buyer of ripping off is unfair. And in terms of moral, it stretches both ways, the vendor and the buyer. Too much is given to the vendor these days that the innocent buyer becomes fair game for them.

Satch

1985 posts

Uber Geek

#445538 4-Mar-2011 15:19

sbiddle: If they had owned up and admitted it was a mistake then I'd agree with you. The fact the retailer didn't own up to that and instead claimed the wholesaler had no stock IMHO makes them fair game!

Thanks Steve. You get my point. Had they owned up then yes my approach would have been completely different (as we all make mistakes). That's why I made sure to point out in this post that they've done everything but tell me it was a mistake.

Talkiet

4792 posts

Uber Geek

Trusted

#445540 4-Mar-2011 15:31

Satch:
Zeon: While legally you are in a sales contract, is it moral to rip them off for an honest mistake?

What mistake? They have not admitted to making a mistake. They have told me it was a supply issue, meanwhile updating the price on their site and upping their stock count, before removing the item completely after a second call from me saying that I was going to take advice.

Who is being immoral here?

If you believe they genuinely set out to mislead people with that price, then fine, be a dick and press them for the price.

If you think it was probably a genuine pricing mistake, ask them to refund all charges and any fees you may have incurred.

Personally, I think you were acting in far worse faith than the retailer by attempting to take advantage of what looks like a genuine mistake.

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

Satch

1985 posts

Uber Geek

#445547 4-Mar-2011 15:44

Talkiet: If you believe they genuinely set out to mislead people with that price, then fine, be a dick and press them for the price.

If you think it was probably a genuine pricing mistake, ask them to refund all charges and any fees you may have incurred.

Personally, I think you were acting in far worse faith than the retailer by attempting to take advantage of what looks like a genuine mistake.

Cheers - N

Fact - I purchased a product at a price they had set on their website. Their live stock count was positive.
Fact - They accepted my order, issued me with a receipt, and accepted my money for that order
Fact - They changed the price of the same product on their website and INCREASED the stock count.
Fact - They emailed me to say that their supplier had no stock of the product I purchased.
Fact - Their website still listed the product at the higher price and positive stock levels.
Fact - The product mysteriously disappeared from their website after a second call saying I was going to seek advice.

Who is really "being a dick about it", and who is really acting in "far worse faith"?

It may well have been a mistake. But why not admit that rather than spin me a story which clearly did not stack up?

timmmay

20574 posts

Uber Geek

Trusted

Lifetime subscriber

#445548 4-Mar-2011 15:45

Give it a shot, it might teach them a lesson.

Talkiet

4792 posts

Uber Geek

Trusted

#445549 4-Mar-2011 15:51

Satch:
Talkiet: If you believe they genuinely set out to mislead people with that price, then fine, be a dick and press them for the price.

If you think it was probably a genuine pricing mistake, ask them to refund all charges and any fees you may have incurred.

Personally, I think you were acting in far worse faith than the retailer by attempting to take advantage of what looks like a genuine mistake.

Cheers - N

Fact - I purchased a product at a price they had set on their website. Their live stock count was positive.
Fact - They accepted my order, issued me with a receipt, and accepted my money for that order
Fact - They changed the price of the same product on their website and INCREASED the stock count.
Fact - They emailed me to say that their supplier had no stock of the product I purchased.
Fact - Their website still listed the product at the higher price and positive stock levels.
Fact - The product mysteriously disappeared from their website after a second call saying I was going to seek advice.

Who is really "being a dick about it", and who is really acting in "far worse faith"?

It may well have been a mistake. But why not admit that rather than spin me a story which clearly did not stack up?

I've given my opinion... Most of their order and payment was all automatic, so don't try to claim they were sitting there, snickering while manually processing your order.

In my opinion, I believe you are "being a dick about it" and you are acting in "far worse faith" than the retailer.

They probably should have been more upfront and explained it was a pricing issue, but you CLEARLY tried to take advantage of the pricing mistake by ordering THREE of whatever it was for about 1/5 of the best price otherwise available.

You're perfectly entitled not to agree with me, but please don't try to change my mind... To me it's perfectly clear what's happening here.

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

1 | 2 | 3 | 4