Retailer pricing error

[Spoonfulofgin]

Saw an item online from a well known retailer... bought it... they called me today to tell me that they had made an error with the price and I can either pay the difference or they can give me a full refund. Anybody know what my rights are please?

Thank you

I would also note that some online retailers don't actually take your money until the order is despatched. They will often reserve the money when you place the order, which makes sure you are able to pay, but they won't process the payment until despatch.

Typically in a store setting, if the seller has accepted payment, that would constitute a binding contract and they are obliged to follow through. Invitation to treat applies if they notice the error prior to payment. In online transactions, however, the seller can treat payment as an offer and decline to accept it and thereby get around the problem.

There's always one...

Yes, I had this in tesco ages ago. Price on a dyson said £300. I took it to the till and was charged £400. Said I thought it should be £300. They reckoned I needed to pay and then get the £100 back from customer service. So I went to customer service who looked surprised and asked me to show her the price ticket. So we went off to look, she immediately removed the ticket and then gave me £100 refund. But she said if I hadn’t paid they would just have declined to sell it to me for £300. (Think it was an expired offer).

Can you tell us who the retailer are so we can avoid? Thanks

It begins with an O apparently so that narrows it down for you.

@UneFoisAuChalet Like hell we did! means “We definitely didn’t”.

To all those who are talking about the point at which the contract is formed- that’s a red herring. You can have a legally binding contract that includes a clause allowing the vendor to terminate in the event of a pricing error.

They've told you your options. They'll know what they are doing.

Even in a shop they are perfect fly legally ok to decline to sell you the item at the incorrect price. Most sell it out of good customer service. But legally it’s tough shit! The shop can refuse to sell it.

Yep. It’s an ‘invitation to treat’.
Otherwise people could just swap over price tags and claim that an item that should be £20 can be bought for £2 because it has a £2 ticket on it.

Why would you want to avoid? They made a mistake on their website.

No, it really isn't a red herring. Once the contract is formed, the vendor can only terminate on the basis of a pricing error if the mistake should be obvious to the buyer. A more general term allowing them to terminate on any pricing error, even if it should not be obvious to the buyer, would be classed as an unfair contract term in a consumer contract.

I’m well aware of the rules/principles relating to unfair terms in consumer contracts. Can you quote the authority (legislative or case law) for what you are saying?
In what way is it unfair to a consumer to refund them before delivery if you have made a mistake in relation to the price? They get their money back, no harm done. I can’t think of many scenarios where a vendor could be forced to deliver goods if they have refunded the payment.

They don’t have to honour the advertised price.

This thread is hilarious. How is it still going and how do people not know this when internet shopping is so essential? They do not have to honour the error and can cancel. It’s really that simple.

Basic contract law.

Since most websites sensibly say there is no contract until the goods have been shipped, you are correct that refunding before delivery is fine. In that situation there is no contract. However, once the goods have been shipped there is clearly a contract. The retailer cannot at that point cancel the contract and demand return of the goods, which is what your position would suggest.

OP’s item hasn’t been delivered though.

Wonder how many of the posters on this thread are lawyers....quite a lot of crap being trotted out.

It's an invitation to treat. There is no contract there the terms and conditions are irrelevant.

I know. However, it seems the website has sent some form of acknowledgement email. Without knowing which website we are dealing with and the contents of the email, it is impossible to say for sure whether a contract has been formed.

I’m confused as to why people are responding with nonsense, when they don’t know th answer. There are clear legal guidelines for erroneous pricing , both on site and online. The retailer doesn’t, 100 percent need to honour it. If it had been delivered. It would be different. But not with an automated confirmation. They can cancel the sale.

Most companies contract is formed on dispatch. Gives them chance to check. There is usually something buried in T&c’s that covers price errors too.

Ive had it happen to me a couple of times. Huge kudos to Vida XL though who sent me the biggest smoker bbq in the world for £25 instead of £250. I was not expecting it to be honoured.

You usually find someone finds a price error and puts it on Hot Deals where people buy dozens. These are almost never honoured.

End of the day people almost always recognise the error when ordering, sometimes you get lucky, sometimes you don’t, but when you don’t you move on.

No, that is not what I was saying. I was clear that I was talking about post formation of contract, pre delivery of goods. Basic contract law is that the parties are free to agree whatever terms they wish, subject to the rules relating to unfair terms in consumer contracts. I’m asking you why you believe that a clause entitling the vendor to refund and refuse delivery if they have made a pricing error would fall foul of the Consumer Rights Act?

@TerraNostra I wasn't the original person commenting on this but refusing delivery even if a refund has been given could be unfair depending on the circumstances. Low value t-shirt with quick delivery time? Probably not or at least very low risk. High value item with a long delivery time, yes I think that could risk consumer unfairness. The customer has paid for (e.g) a sofa, had their money tied up for ages (usually, but not necessarily) and been waiting for their sofa patiently. Meanwhile the price of other sofas has changed. It is unfair for the retailer to just change their mind in that situation and refund, unless of course they have a specific reason e.g. we can't deliver you this sofa because there is a ban on importing it from xyz country where we make it.

I should say more than a specific reason - the reason would have to be considered fair. It can't just be "we don't like the agreed price anymore".

In that situation too, often the item - such as a sofa - is made to order. Retailers usually write into their contracts that customers cannot cancel the order once accepted, although in practice this isn't always followed through due good will and retailer reputation.

If the item is due to be delivered from the retailers warehouse it is probably a stock item and can be cancelled prior to delivery. This includes items due to be received such as those currently on a ship.

Bespoke items made to order are often not confirmed until the retailer actually placed the order with the supplier, but once this has happened retailers risk a financial hit if the item cannot be sold so has tighter t&c to avoid cancellation.