Forum Moderators: buckworks
I've heard of "Bait and switch" laws before, but am I really obligated to sell this item to him for a buck?
Otherwise a pricetag on a widget in shop is usually seen as a final offer that a buyer can accept. Adds in a newspaper not as much so because a typo could ruin the shop.
Errors occur on tags. Plus tags can easily be altered. The law (in the US) uses a FICTION that ad/tag prices are "invitations to make a bid."
Where it gets complicated:
1) Buyer wants 10,000 of a missmarked $10 item and is willing to sue
2) Small error, not utterly obvious, is on a wholesaler site and resaler relies on that price to sell huge quantities of that product. For example, a gov't bid.
What if the payment system you use is one like PayPal or Nochex where it is tied into the cart the money is taken instantly and, more importantly, *before* you've seen the order/mistake?
Then you are hooped. Once the funds are taking the deal is done and it is up to you to come up with the goods or services.
All my shop sites have 2 versions... one live... one not... all price changes are made to the one that is not live... we wrote a "dif" algo that goes through the live and non-live database and reports on products who's price don't match from one to another... if the difference is greater the 100% it flags it in the report and the report is looked at by a human before the changes are made live... trust me it is a layer of control I couldn't sleep without.
Not a done deal. Simply tell the customer that (a) you're out of stock, or (b) that the item is discontinued.Refund his money, and move on.
So you want me to lie?
First all my sites have the real time stock listed and boast that fact so I wouldn't say that to someone.... And even if it was out of stock then they would expect a back ordered one.
If it is discontinued then you better take it off your website and stop selling it. Imagine seeing a product you will told was discontinued back on the same site that told you that and the only difference is the price is higher.
Like it was pointed out if you are talking about an order of 1 item then maybe they will let it go... if someone buys bulk for reselling or for making contract estimates and we are talking building supplies or something then they aren't just going to move on when you are messing up their business with your lack of professionalisms.
Also what if it isn't a physical good? What if it is digital... how can it be out of stock or discontinued?
All and all this response is shady at best.
[edited by: lorax at 8:01 pm (utc) on May 30, 2007]
In many cases a purchase order, pro forma invoice, or order acknowledgment may serve in place of a formal sales contract. A purchase order is issued by the buyer and sent to the seller, stating the type and amount of goods to be purchased, the price, and any other material terms such as a time limit on filling the order. A pro forma invoice is issued by the seller and sent to the buyer, often in response to a purchase order or oral agreement. In international transactions, the pro forma invoice may enable the buyer to open a line of credit with which to pay for the goods ordered. The pro forma invoice typically includes relevant terms and conditions that apply to the sale.
from Answers.com [answers.com]
[edited by: Demaestro at 6:35 pm (utc) on May 30, 2007]
[edited by: lorax at 8:04 pm (utc) on May 30, 2007]
[edit reason] edited for minor fair use [/edit]
I've dealt with enough people calling me to take every advantage for honest mistakes, I've learned that these customers aren't in my best interest, and I refund their money and move on.
[edited by: lorax at 8:01 pm (utc) on May 30, 2007]
Then you are hooped. Once the funds are taking the deal is done and it is up to you to come up with the goods or services.
I've had money refunded on many occassions when I've made an online purchase and the store finds out later that the item is out of stock or unavailable from a third party shipper. Not every store has 100% real time updated, computerized inventory systems, nor can they control what happens when their supplier or drop shipper is out of stock.
[edited by: Jane_Doe at 6:55 pm (utc) on May 30, 2007]
Make sure you have disclaimers in your TOS or Policies that give you the right to cancel any transaction at any time for any reason. That will give you the full right to cancel any order in a reasonable amount of time.
Trust me, these types of clauses are in many major credit card proccessing companies TOS and you have the legal right to have it in your policies as well.
A $200 item wound up being listed for $1. Well this customer saw this snafu and tried to place an order for it.
Was it really only one customer?
If so, make it a PR stunt. Say he's your one millionth customer and was the winner of the secret $1 sale. Get his picture with the item, put it on a page, and put a bunch of balloon clipart up. Go nuts. Do a press release about it.
Heck, maybe you'll get some local press from it.
Why piss off a customer for $199? That customer will buy from you forever if you honor that price.
Welcome to WebmasterWorld!
In the US, the issue is when is the order confirmed. Listing items for sale on a website is not necessarily an offer that can be accepted just by using the checkout process. The merchant can reserve himself the right to accept the buyer's offer to buy. This case will probably be determined by the language on the website and in any confirmation emails sent. If you confirmed the order through an auto confirmation email, then there is an enforceable contract.
IAL
stajer... thanks for the clue in about the UCC... I will say that is possible that you could be dealing with a commercial entity and not an individual... Credit cards are issued in corporation names so it could apply.
The point I was trying to make, and you did back it up, is that if you send out an order confirmation then that looks to be enforceable as far as sales contract law is concerned.
Additionally, if the seller is suspicious of fraud, they have the right to immediately notify the person and refund the credit card. But in this case, the credit card was never charged.