Online Retailer Won't Supply Advertised Item - Consumer Rights?

• 

  Davo1111 on 02/06/2015 - 05:38

  +6

  If they now say - as I suspect they will - that they can't provide the item new or refurbished at the price they advertised and which I bought it at, what rights or recourse do I have?

  You have the right to a full refund.

  Would it be legal for them to simply cancel my purchase and refund the money if they don't want to fulfil the order, or have we entered into a binding contract and they must provide the item at that price?

  Google: invitation to treat

  Apart from the legal question, is there any recourse available via Paypal or AMEX if they refuse to honour the order?

  no

  Giving them the benefit of the doubt, they've just been too lazy to update stock levels on their website, even after I called about this particular item - But I think it's also possible this is an underhanded marketing ploy to get potential customers to call or visit the shop on false pretences in order to drive sales.

  could be, they could be a drop shipper. They may have hundreds sitting out the back, and sit there with "stock level 1" to entice customers.

  • 

    y on 02/06/2015 - 09:43

    Thanks for the reply.

    I've googled "invitation to treat", and this seems to refer to a concept in contract law whereby simply advertising an item at a certain price (e.g. in a shop window or catalogue) only constitutes an offer to enter into a negotiation, and doesn't mean the vendor is forced to sell at that price.

    However, in this case, I would argue that the transaction has gone further and that the retailer has accepted my offer at their advertised price - They've sent me a confirmation email and debited the advertised price from my credit card.

    The price is also such that a reasonable person would assume the order would be fulfilled, i.e. it's not the case of a car being obviously mispriced for $1.

    I'm not intending to actually sue the company but I do wonder whether they are legally entitled to simply cancel the sale.

    Any Australian contract law experts on Ozbargain?

    • 

      Davo1111 on 02/06/2015 - 15:13

      order confirmation doesn't mean much, generally they have something in their T&Cs about it not being an acceptance of the order. Dell has been doing it for years, and they continually get away with it. There have only been a few cases (i think in Malaysia) where they had to fulfill the order

• 

  sparkles on 02/06/2015 - 06:21

  +1

  Simply request an immediate refund. It sounds like you will not get the item you want unless you spend extra so don't allow them to keep your funds any longer. And can I say, if you can maybe wait a little while longer, EOFY sales just around the corner.

• 

  c64 on 02/06/2015 - 10:13

  +3

  bait advertising?

  • 

    mrmarkau67 on 02/06/2015 - 10:19

    +1

    Yes, it could be bait advertising. Suggest you make a consumer complaint.

• 

  frowny on 02/06/2015 - 21:07

  Nope, it's not a contract to sell you the item.

  • 

    y on 02/06/2015 - 21:14

    Then what would be?

    • 

      frowny on 02/06/2015 - 21:18

      One important element of contract law is that there needs to be an intention to enter into a legal and binding contract. Just from the way that the business is operated, it is very very likely that the facts will be seen that all they are doing is offering customers products at certain prices, and objectively they will try their best to satisfy them, but at the end of the day not every single one of them is legally binding.

      This idea is even more likely when you think of all the exclusions they have and the power they retain to cancel orders at their discretion, for whatever reason or for instances like pricing errors.

      • 

        y on 02/06/2015 - 21:22

        This implies that any and all online orders - even if the site explicitly displays a stock level, and charges credit cards the advertised price - are completely non-binding on the seller, and he can cancel orders for any reason if he feels like it and is under no obligation to deliver?…

      • 

        frowny on 02/06/2015 - 21:25

        @y:

        Yep.

        For example, look at DSE's terms:

        We may cancel any part of an order (including any orders that we have accepted) without any liability to you for that cancellation at any time if:
        (a) the Products in that order are not available;
        (b) there is an error in the processing of your order;
        (c) there is an error in the price or the Products description posted on the Site for the Products in that order;
        (d) we reasonably believe your order has been placed in breach of these Terms; or
        (e) you have asked us to cancel your order in accordance with section 13.3 below.

        That is quite reasonable. I don't know about the retailer you're going to, but they can write anything in their terms and conditions and you have to abide by them if you buy something from them.