Why Doesn't Amazon Have a Legal Obligation to Fulfil Pricing Errors?

Lmalaymail on 17/07/2019 - 12:38
Last edited 18/07/2019 - 16:43

Hi all

Currently in a dispute with Amazon in relation to a product they've advertised as an 8-pack, but I only received one bottle. They then said it was a description error, and basically, it's too bad.

I read in another post that they don't have the legal obligation to fulfil these orders, is that right? And if so, why? It just does not seem right.

Edit: more details on order

The order I made was for a 8-pack softener 400ml for $28.
I honestly doubt it's considered as exploitation of pricing error if Coles is advertising for the same price per unit.

Edit 2: added link
Link: https://www.amazon.com.au/gp/product/B077C23HR3/ref=ppx_od_d…

UPDATE 18/07/2019
Thanks for helpful comments, all.
Amazon has since refunded my payment and have also sent a free bottle, so kudos to them.

General Discussion

Related Stores

Amazon AU
Amazon AU
Marketplace

Comments

  • poboy on 17/07/2019 - 12:42

    Edit. I misread this.

  • HighAndDry on 17/07/2019 - 12:42

    Is it "sold by Amazon" or just "fulfilled by Amazon"?

    Also, a little confusing but:

    a product they've advertised as part of a 8-pack, but I only received one.

    One is "part of a 8-pack". It's one-eighth of one…

    • malaymail on 17/07/2019 - 12:48

      Sorry, I meant they advertised is as an 8-pack.

    • malaymail on 17/07/2019 - 12:49

      "Shipped & sold by Amazon"

      • HighAndDry on 17/07/2019 - 12:56

        Less wriggle room, but it's the same concept as pricing-errors. There's no hard and fast rule they have to fulfill, so long as it's a genuine error.

  • [Deactivated] on 17/07/2019 - 12:44
    +20

    If they've provided the option to give you a refund with shipping paid, they've done what they should do.

    What you're expecting is to be able to exploit an obvious error (provided there even was an error) and hoping some government body forces the business to lose money to appease you.

    • malaymail on 17/07/2019 - 12:53
      +3

      It wasn't exactly cheap enough to be consider an exploit.
      I'll add more details to the OP, but the product I purchased was an 8-pack softener for $28, which I just checked on Coles is $3.50 per bottle so the same price.

      • [Deactivated] on 17/07/2019 - 12:55
        -3

        Did you pay $28 for a product that cost $3.50 at Coles and got the same number/amount of product?

        The order I made was for a 8-pack softener 400ml for $28.
        I honestly doubt it's considered as exploitation of pricing error if Coles is advertising for the same price per unit.

        If I understand correctly, you're saying it's the same $/ml.

        …or were you expecting an 87.5% discount to not be a price error?

        • malaymail on 17/07/2019 - 13:00

          Uh, there's no discount if $28/8 bottles = $3.50 per bottle?
          My math could be wrong.

          • [Deactivated] on 17/07/2019 - 14:04
            +1

            @malaymail: Your math is correct, your wording is confusing. (Just read the rest of the comments. I'm not alone in the confusion).

            You said you got one bottle which Coles is selling for $3.50. you then say you paid $28 which works out to be the same price.

            So did you get one bottle of $3.50 but paid $28 or did you get one 8-pack instead of eight 8-packs?

            Clicked your link. This should be 8 x 400ml for $28. Is what you received 8 bottles of 400ml each?

      • Duff5000 on 17/07/2019 - 12:56

        That's weird then, looks like it isn't a mistake but they probably dont have more to ship?

      • Typical16-bitEnjoyer on 17/07/2019 - 14:59
        +3

        What exactly am I missing here?

        Just take the refund and buy at Coles for the same price.

        • magic8ballgag on 18/07/2019 - 09:29
          -2

          What exactly am I missing here?

          OP is entitled and believes they deserve what they originally ordered, simply because Amazon made an error.

    • ronnknee on 18/07/2019 - 10:23
      +1

      Doesn't seem like OP is exploiting a price error. They received a single item instead of a multipack, at the price of a multipack.

      • [Deactivated] on 18/07/2019 - 10:26

        After significant amounts of clarification, I have come to the same conclusion.

    • Chandler on 18/07/2019 - 12:27
      -1

      Yes, but I have an issue with that too.

      The same situation in a brick and mortar store, I would be walking out with the product at the advertised price.

      Why do online stores get away with cancelling purchases because they made a mistake?

      Brick and mortar:

      • Staff mislabel item on shelf
      • You take item to checkout, and then either:
        • it rings up at that price,
          you pay,
          you leave;
          or
        • it rings up at a different price
          they do a price check, discover their error,
          you pay the price as originally labelled,
          you leave,
          they correct error.

      Online:

      • staff mislabel item on store
      • you take item to checkout
      • order gets processed
        you pay
        system/staff discover error
        your order gets cancelled
        you receive refund days/week/s later

      Case in point: recent price error at the Good Guys - I purchased online two items, one was available for pickup, one for delivery. Order was processed, received notification in-store item was ready to pickup, so I went and got it.
      Later received email advising of pricing error and that my order would would be cancelled.

      This shouldn't be the case - why should brick-and-mortar's suffer? If brick-and-mortars are required (by law) to honour the advertised price, then so should online stores - especially after you have paid.

      Imagine the above online cancellation at a brick-and mortar store…

      • Staff mislabel item on shelf
      • You take item to checkout,
        it rings up at a different price,
        they do a price check, discover their error,
        you pay the price as originally labelled,
        you leave,
        they correct error,
        staff chase after you stating that they fixed their error, you have to give the item back and that they'll give you your cash back in a few days/week/s
      • [Deactivated] on 18/07/2019 - 12:43
        +1

        What you're saying is an obvious error should be made uncorrectable even when there are means to do so just to match the limitations of a brick and mortar store?

        Should we make brick and mortar stores unable to display physical items and only display a picture of the item to match an online store?

        • Chandler on 19/07/2019 - 10:24
          -1

          What you're saying is an obvious error should be made uncorrectable even when there are means to do so just to match the limitations of a brick and mortar store?

          No - the store is more than welcome to correct the error, but they should honour purchases already made at the advertised price.

          Just because they haven't handed over the product yet (due to the nature of online vs physical) doesn't alleviate them of their responsibility to honour the advertised pricing (in my opinion).

          Should we make brick and mortar stores unable to display physical items and only display a picture of the item to match an online store?

          They already do for some products - you need to take the card to the counter to get the actual product.

      • Typical16-bitEnjoyer on 18/07/2019 - 23:09
        +2

        If brick-and-mortars are required (by law) to honour the advertised price

        They aren't required.

        • Chandler on 19/07/2019 - 10:31

          I may be confusing store policies with law, but I did find this:

          Where different multiple prices appear for one product or service, businesses must withdraw those products and services and fix the display or advertisement.
          [if] the business can’t withdraw the product or service from sale and fix the error, you are entitled to buy it for the lowest price.

          Source: https://www.accc.gov.au/consumers/prices-surcharges-receipts…

          An example of this applying would be that if you saw JB had product X listed online for $10, but in store they had it for $20 they would be required (by ACL) to give it to you for the online price, even if it was an error.

          If I decided to make that purchase online (rather than in-store), why should they be allowed to cancel my order?

          Some retailers also try to get around this by having slightly different product codes for items online vs in-store, so that they can then argue that it's a "different product" and thus this situation shouldn't apply.

          • Typical16-bitEnjoyer on 19/07/2019 - 10:38
            +1

            @Chandler: Read what you just linked again. Carefully.

            They are not required to sell to you. That's not what that paragraph says. They just need to fix the error.

            Have a look at all those "price error" signs near the JB checkout next time you're in store.

            • Chandler on 19/07/2019 - 11:18

              @Typical16-bitEnjoyer: What about:

              [if] the business can’t withdraw the product or service

              I would presume that me holding the product at the checkout would constitute "can't withdraw the product or service from sale"?

              • Typical16-bitEnjoyer on 19/07/2019 - 11:24
                +1

                @Chandler: You presume wrong.

                Why wouldn't they be able to withdraw the product from sale at that stage?

                Just because you are standing at a check out with an item in your hands doesn't mean it's yours. It's still the store's property.

                They refuse to transact the item with you. They tell you there is an error. They remove the sign off the item on the shelf. They don't sell the item until they put a new sign on the item on the shelf with the correct price. This takes a matter of minutes and complies with ACCC requirements. Done. Fixed.

                I think you are confusing your (incorrect) "price error" scenario with the situation where somebody goes into a physical shop, purchases and leaves with the incorrectly priced item before the staff become aware of the price error.

                • Chandler on 19/07/2019 - 12:16

                  @Typical16-bitEnjoyer: I'd say it's more the store policies that confuse things, as many stores do honour their advertised price even if incorrect (especially if a correction hasn't yet been made).

                  • Typical16-bitEnjoyer on 19/07/2019 - 12:24
                    +1

                    @Chandler: Sure. That happens sometimes. A store might honour a price error as a gesture of good will. What does that have to do with ACCC guidelines and the ACL? Those are the entire premise of this discussion you started.

                    • Chandler on 19/07/2019 - 12:51

                      @Typical16-bitEnjoyer:

                      hat does that have to do with ACCC guidelines and the ACL

                      Well it doesn't, otherwise it wouldn't need to be store policy.

                      The entire premise of the discussion I started was that stores should honour what they advertise, and physical vs online should be the same in this regard.

                      The only part of my intitial comment that should be ignored/removed is:

                      This shouldn't be the case - why should brick-and-mortar's suffer? If brick-and-mortars are required (by law) to honour the advertised price, then so should online stores - especially after you have paid.

                      The rest of the comment stands as is, especially my reply to tshow.

                      I did confuse policy with law, but at the end of the day it comes back to a store should honour what it advertises, even if it was a mistake, and there should be little to no difference between physical vs online in regards to this.

                      • Typical16-bitEnjoyer on 19/07/2019 - 13:27

                        @Chandler:

                        Well it doesn't

                        I'm glad we agree there. I'm glad you now see you referenced the ACCC incorrectly.

                        The only part of my intitial comment that should be ignored/removed is

                        I'm glad we also agree we should ignore what you posted there.

                        I did confuse policy with law

                        I'm glad we also agree here.

                        a store should honour what it advertises

                        So it really comes down to what you personally believe they should do. That's it. Cool. You're entitled to your opinion.

                        Here's mine. I don't think stores should be forced to honour pricing errors. Mistakes happen. The ACCC agrees.

                        there should be little to no difference between physical vs online in regards to this.

                        There is little to no difference in regards to this. Online stores occasionally honour pricing errors. Physical stores have also honoured pricing errors in the past. The main difference is it's possible to go in store and purchase a price error item before it is known. The delays involved in online stores normally mean pricing errors are identified before shipping occurs.

                        In your scenario they couldn't cancel your purchase as you had already left the shop. The online purchase had not shipped yet.

  • Duff5000 on 17/07/2019 - 12:52
    +6

    I read in another post that they don't have the legal obligation to fulfil these orders, is that right?

    Have you not seen the many price errors that come up on here?

    So next time a tv comes up as $99.90 instead of $999 i should be able to buy like 100 of them and put some small business out of business? They are entitled to reject your order and refund you.

    • malaymail on 17/07/2019 - 12:54

      updated OP

      • Duff5000 on 17/07/2019 - 12:59
        +2

        I was more answering the question not the specific example. As long as you get your money back that's really all you are entitled to.

        • malaymail on 17/07/2019 - 13:02
          -1

          Thanks Duff. At the end of the day, It's only $28 so this isn't a big issue, it just brought my attention to what obligations business actually have and how are consumers protected.

          • lint on 17/07/2019 - 13:51

            @malaymail: I'd be mad if I paid 8x the price of something, even if it's only $28, that's the difference between 1 and 8 years supply of fabric softener and is the very definition of getting ripped off.

          • HighAndDry on 17/07/2019 - 13:53
            +3

            @malaymail: You're protected because you get a refund and not out of pocket.

  • Seraphin7 on 17/07/2019 - 12:54
    +9

    Why Doesn't Amazon Have a Legal Obligation to Fulfil Pricing Errors?

    For the same reason every other business doesn't have this obligation. There is nothing unique about Amazon in this regard.

  • Duff5000 on 17/07/2019 - 13:03
    +1

    I would contact them again and link them to the coles page. It isn't a pricing error, it is a picking error imo.

  • lint on 17/07/2019 - 13:36
    -1

    I'm confused what the problem is. So I understand Coles has 1x400mL for $3.50 and you bought 8x400mL for $28 (or $3.50ea) from Amazon but then you only received 1x400mL bottle for $28?

    Or were you expecting 8x8x400mL (64 bottles total)? Where is the error that made you expect to get 64 bottles if that's the case?

    • malaymail on 17/07/2019 - 13:39

      I ordered expecting 8 bottles, but they only sent one and have since said it was a description error.

      • one man clan on 17/07/2019 - 13:41
        +1

        So did you pay $28 or $3.50? Have they refunded you? Have they offered to send you the additional 7 bottles?

        Or did you just get scammed out of $24.50? If so, keep escalating and do a chargeback because the product is not as described.

      • lint on 17/07/2019 - 13:42
        +1

        So you paid 8x the price of what it costs at Coles?

        Although they're not obligated to fulfill your order of 8x400mL (although they should as you have a strong case that this wasn't a pricing error), I do believe they're obligated to fully refund you (including cost of return) under ACL as goods aren't as described.

        Please take a screenshot of the product page as it appears right now as well as download a copy of the invoice where it clearly states 8x400mL in case you need to take it further.

  • one man clan on 17/07/2019 - 13:39

    This doesn't seem like a pricing error at all - they sent you a bottle of fabric softener for $28. Unless it's made of liquefied gold why would you want to pay that price? I'm very confused by this thread.

    • malaymail on 17/07/2019 - 13:40

      They advertised as 400ml x 8 pack

      • one man clan on 17/07/2019 - 13:41

        See above - what did you pay, what did you receive and what have Amazon done to fix the situation.

        • malaymail on 17/07/2019 - 13:42

          I paid $28, received 1 bottle, and Amazon is saying they will send a "replacement" (their word) and can't guarantee it will be 8 bottles.

          • one man clan on 17/07/2019 - 13:45
            +1

            @malaymail: Ok now we are getting somewhere.

            That's bullshit and you should either insist on all 8 bottles or demand a refund now/chargeback.

            Although again it's not a pricing error at all

            • [Deactivated] on 17/07/2019 - 14:12
              +7

              @one man clan: Sounds like the whole issue of "price error" is one giant misdirection.

              Just sounds like a packing error.

              • RiseAndRuin on 17/07/2019 - 17:14
                +3

                @[Deactivated]: There is no such a thing as an "error". Amazon's robots are coming for us, this is just the beginning…

                • [Deactivated] on 18/07/2019 - 10:28

                  @RiseAndRuin: First they short us on fabric softener. We'll have to wear stiffer fabric and before long, they'll rule the world!

              • mskeggs on 17/07/2019 - 17:19
                +1

                @[Deactivated]: Thank god somebody finally said this.

                • [Deactivated] on 17/07/2019 - 21:33

                  @mskeggs: It took a while to realise. It was the puzzle of the day for me.

                  I had to diagnose unspecific pain in a late stage dementia patient and that was easier.

  • Clear on 17/07/2019 - 13:42
    +2

    Have you asked for a refund?

  • Heaps for Cheaps on 17/07/2019 - 13:44
    +1

    I have seen the same thing happen at Amazon previously with Tork paper towels for $175, but they ended up sending a single pack (rrp $35) instead of a box of 5 (5x $25 = $175)… They also claimed it was meant to be for a single pack… But this is like buying a 12-pack bag of Cadbury Freddos at Coles only to receive a single Freddo… It is definately an error but staff just aren't able to make that decision without escalation to a senior leader…

  • trustnoone on 17/07/2019 - 13:53

    They then said it was a description error, and basically, it's too bad.

    Did they refund you due to it?

    I read in another post that they don't have the legal obligation to fulfil these orders, is that right? And if so, why? It just does not seem right.

    If its a pricing error they don't have any legal reason to fulfill, they can just refund your money back (not a lawyer just as far as I'm aware). I think it needs to be obvious that its an error (basically difference between error vs false advertising) so theres that i guess.

    Makes sense to me personally though, if a company sells a phone for $100, instead of $1,000 because of a slip of a number its obvious it was a mistake, and you can't really claim false advertising, and doesn't sound right that company loses out $900 for it.

  • TimOfEastBNE on 17/07/2019 - 18:46
    +1

    google the difference between an offer and an invitation to treat. The price on the website is an invitation to treat (like on a supermarket shelf) and they are not obligated to commit to sell at that price)

    • adam on 17/07/2019 - 19:44

      But when you place an order and they take your money a contract has been formed. They should then be obliged to supply. Amazon don't bill until they ship, but many other companies take payment and then back out of this… this is, according to my understanding of contract law, not lawful. Just because they use an automated system doesn't mean they are entitled to blame that system and back out of a contract… companies get away with it time after time because none of the amounts are big enough to warrant going to court for it. Payment should not be taken until they are prepared to fulfil the conract.

      • Duff5000 on 17/07/2019 - 20:39
        +3

        But when you place an order and they take your money a contract has been formed

        Nope.

        From another discussion of this:

        Basically an online advertisement is considered an "invitation to treat". So when you click to buy, you are effectively making an offer at that price to the retailer who then accepts, or in this case declines the offer. Thus no contract is formed.

        Either way they also specifically have terms of use that cover them in these circumstances. They absolutely do not have to honor pricing errors.

        • adam on 18/07/2019 - 09:26

          When they take your money a contract has been formed, not when you accept an offer to buy.

          • Typical16-bitEnjoyer on 18/07/2019 - 23:18

            @adam:

            according to my understanding of contract law, not lawful

            Then your understanding is incredibly basic and flawed.

            Contract Law 101. The terms are critical. Acceptance is critical.

    • ronnknee on 18/07/2019 - 10:27

      OP has partially received the order. This is no longer an "invitation to treat" issue.

  • powerinnumbers on 18/07/2019 - 09:01
    -1

    When taking a sale and payment over the internet a seller has the right to overturn the sale by refunding any sale payment. They don't need any excuse at all, no such thing as having to prove an error.
    See this is different to in bricks and mortar where the customer leaves with a sale item , the store can't bring them back by error.

    • ronnknee on 18/07/2019 - 10:26

      When taking a sale and payment over the internet a seller has the right to overturn the sale by refunding any sale payment. They don't need any excuse at all, no such thing as having to prove an error.

      This is correct. However, it has nothing to do with OP's situation.

    • HighAndDry on 18/07/2019 - 16:53

      See this is different to in bricks and mortar where the customer leaves with a sale item , the store can't bring them back by error.

      Not that different. When the company ships you the product, they can't force you to send it back either.

      • powerinnumbers on 23/07/2019 - 09:32

        in bricks and mortar both parties agree at the checkout.
        On line, both parties agree once the goods are shipped and not before.

        • HighAndDry on 23/07/2019 - 10:57

          Yes. After check-out, they can't force you to return the goods.

          After goods are shipped, they can't force you to return the goods.

  • ronnknee on 18/07/2019 - 10:31

    OP, continue contacting Amazon for support. Clearly you did not the items as described (1 instead of 8). It is not a pricing error if you paid the price of a multipack. If they aren't helpful, lodge a chargeback.

  • Webber000 on 18/07/2019 - 11:00

    Amazon are selling singles of that item for $6.99
    Therefore there isn't a description error in the title (though the ship weight does incorrectly suggest it would be a single).
    I think you were supposed to receive an 8 pack for your $28. If coles are $3.50 then a single on amazon being $6.99 makes sense, but even amazon AU wouldn't charge $28 for a single?! OK maybe!

    My concern is if someone's already started splitting open 8 packs you will probably get another single as the next picker will take from the open pack. Though the website also says unavailable now so hopefully amazon have realised and are fixing.

    Either demand the 8 pack or insist on a full refund. If it were a mistake they could just cancel it and issue a full refund, and I think that would actually be my preference in this case.

  • Brendoo on 18/07/2019 - 11:26
    +2

    Looks like a warehouse picking error. Resolution should be to send you 7 individual bottles to make up the balance of 8 that should have been in the one box.

    Or offer you a full refund and let you keep the one bottle.

    Amazon has amazing customer service so I am sure they will send you a box of 8 with free overnight shipping.

    I’ve had many claims for much more expensive items and their customer service is second to none.

  • chumlee on 18/07/2019 - 16:54

    They don't pay tax & you expect they will honour a prive error???

  • zambuck on 19/07/2019 - 14:36

    Pity the error went their way instead of yours. Sometimes it does go in the customer's direction though.

    Amazon Accidentally Sold $13,000+ Camera Gear for $100 on Prime Day

    • Duff5000 on 19/07/2019 - 22:50

      wow! wish i had seen that.

Login or Join to leave a comment
Login Join