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Can Websites Change Prices Once Ordered?

Author: Lucy Debenham BA (hons) - Updated: 26 October 2010 | Comment
 
Advertising Code Rights Online Sale

Q.

I've just ordered a Nintendo Wii online and when I placed my order it was advertised at £159.99. After an hour or so went by, I contacted them as I hadn't received any confirmation e-mails back from them.

They said they hadn't confirmed the order because they had just changed the price to £169.99 and were refusing to sell me the item for the advertised price when I ordered it. It is now showing the updated price of £169.99 on their website, can they do this?

(Mr Darren Kendrick, 9 October 2008)

A.

On the high street, if an item is advertised at the wrong price, the company selling the goods or services has to remove the items from the shelf. There is no obligation to 'honour' the advertised price and therefore no binding contract for sale. However, as a goodwill gesture it is not uncommon for larger companies to allow the consumer to pay for the item at it’s mislabelled lower price.

The same ‘no obligation’ principle applies to websites and online shopping stores in the UK. If the price advertised on the website turns out to be incorrect, then the seller does not have a legal commitment to complete the sale. Remember that an advertised price is not a contract of sale. It is therefore acceptable that the seller can refuse to complete the transaction if the price has changed.

It is probably right to assume that the company that you tried to purchase your games console from consider the information to have been ‘out of date’ or in the process of being updated, and was not deliberately deceptive in their advertising. The fact that no order confirmation was sent through means that the company did not accept or acknowledge a sale, and the goods remain their property. The company has the right to decline your order.

If the company you were trying to buy from was based in the UK, they will be under the regulation of the British Code of Advertising, and the Control of Misleading Advertisements Regulations. The British Code of Advertising “requires all forms of non-broadcast advertising to be legal decent, honest and truthful and to be prepared with a sense of responsibility to both consumers and society”.

Therefore, if you have any complaints, you can always try contacting the Advertising Standards Authority (ASA) in writing if you feel that the matter should be taken further. You can also try contacting Trading Standards. However, you should be aware that it is unlikely that any action will result in compensation, especially as technically the product was not sold. It is also unlikely that the advertised price was deliberately misleading, and so the likelihood of any action being taken by Trading Standards or ASA is fairly minimal.

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Comments...

If returning an item online purchase which was reduced in a sale, do I have to accept a credit note/gift cardor should I be entitled to a full refund on my credit card?
panda - 17 January 2012 @ 10:54 AM
I have a question regarding an order I placed on line.A network server was advertised at a very low price on a web site.The following steps occured; 1. 29/11/2011 - I placed the order for the advertised price and completed the on line payment process using my company credit card. 2. I was sent an order acknowledgement and that I would recieve a confirmation and a tracking number. 3. 30/11/2011 - I was sent an order confirmation number and a link to the companies despatch system. 4. Around mid day I logged onto the desptach system to check the status.The delivery status was 'awaiting despatch' and the Order Status read 'Your payment has been taken and your order has been approved for despatch' (I have a hard copy of this) 5. At around 5:30 I received an automated email saying my order has been cancelled. 6. I replied to the email asking for a reason why the order has been cancelled. I received a call the next day saying it was due to incorrect pricing on their web site. I have confirmed that the payment has actually left my account.I guess my question is has this transaction complete the process of offer and acceptance under contract law.I remember from my colleage days that the sale of price marked goods is an invitation to treat and as you state not a binding contract.However given that they have taken my money and I have a audit trail which includes a letter of acceptance would I have a reasonable chance of enforcing this contract. I have to say that I am more disappointed with the attitude of this company as they could have just phoned and said we made a mistake and we couldhave come to a very reasonable compromise. Many Thanks 2. I was sent an automated email with an order reference number. 3.
Jimbob - 2 December 2011 @ 9:06 PM
hi i purchased a dress yesterday payd for it and had my receipt. thae later on i was sent an email of refund saying thay have priced it wrong i am not happy at all.. have thay got any right to do this????
leanne - 14 April 2011 @ 11:03 AM
What if I have got into the similar situation, but in my case I have received the order confirmation by email? They have not changed the price but removed the item from their web site and refused to sell it to me.
GoaHaris - 12 April 2011 @ 6:30 PM
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