Retailer Threatens Legal Action for Using 90% off Coupon

I recently found a 90% off coupon code that worked on a retailer's website. I placed an order with the code to test it out. It went through and the item got delivered.

A few weeks later, the retailer came back to me asking for the full payment of the item and threatened legal actions.

From a legal perspective, my understanding is that:

  • If the coupon code is not authorised as they claimed, they should have cancelled the transaction before sending out the goods.
  • Given the order is already delivered, the transaction is complete. As such they have no right to ask for payments retrospectively.

What are your thoughts on this?

Comments

  • +24

    How much are we talking?

    • +259

      I don’t think we talk enough, Jimmy. How are you

    • +11

      @fortunecookie c'mon man, let us know, we're curious cats. Which retailer, item, and how much was it / saved?

      If you're worried about details, just give us comparable. EG. Instead of Good Guys, and a Washing Machine, say Bing Lee, and a Dishwasher.

      We need this to be able to go to sleep tonight.
      Also, well played on the bargain hahahah

  • +2

    Goodonya!

    • +3

      Good on you for not sharing here, ordered yourself and got the legal letter, if everyone here orders one and gets them delivered, then the retailer has so much legal cost to sue every ozbargainer

  • +17

    Which retailer? Small one person operation or someone of Hardly Normal size?

    • +21

      I wouldn't do that to a small business. It's more like a medium size one.

      • +8

        I wouldn't do that to a small business.

        I fear a lot of people would. Glad you wouldn’t.

        I do reckon tho that a small biz would likely realise well before dispatch. In fact, I know of a small business owner that this has happened to and they emailed the customer before dispatching.

        Their dispatch and your subsequent receipt of the item is the process completed. They really should have paid attention.

        • +1

          I mean, it sucks for the retailer, very much.

          Someone stuffed up by having a 90% off code and THEN for processing the sale. Ouch.

  • +6

    heh, how did you happen across the coupon code?

    • +95

      90OFF

      • +48

        The trick was to make sure you enter the coupon with bold text.

      • +14

        110OFF means they pay you to take the goods off them

    • +34

      His real crime is that he did not share that on OzBargain with rest of us. Traitor!

  • +36

    You taught him a valuable lesson. He should have thanked you.

  • +36

    Do you have a receipt of payment?

    If so, the item is yours.

  • +2

    What do there terms and conditions on the website say?

    Hiw did you find the code

    • +19

      T&Cs would hardly matter, the contract has been executed.

      They could ban you from their store. Refuse a sale.

      But in this instance, the retailer had a chance to say oh sorry, it's unreasonable to make this sale it was an error, and cancel the order. (Looking at you Dell) but they didn't.

  • +35

    Lucky you forgot to post and share the deal 🤔

    • +4

      Yeah lucky for the business, the people here would have broken their website.

      • +1

        And then business would have realised to strengthen their system to never allow 90% off no matter what. Unless they themselves authorised.

    • +2

      He didn't forget, he just didn't want to share.

  • -1

    As above - terms and conditions of the site T&Cs of code?

    That will be your guide better than any opinions on ozbargain

  • +16

    What are your thoughts on this?

    Should've posted it as a bargain (or still do it if the code still works) 😅

  • +4

    If only you shared it…. the store will say thanks instead of threatening….

  • +83

    Item selected. Payment made. Payment accepted. Item Delivered. End of transaction. Let them threaten as much as they want, it's their due diligence that was at fault.

  • +30

    I would ignore the threat. Contract has been fulfilled.

  • +13

    and threatened legal actions.

    You have two choices
    1- ignore their contact/emails etc
    2- respond back to their email with two words "bring it" (rock meme can be included for extra points)

  • +7

    Sucks to be them.

  • +10

    I'd ignore them.

  • +7

    What is the item's original dollar value?

  • +46

    Shame on you for not sharing it on ozbargain.

    • +2

      Finally found the most important post that should have been first.

    • +6

      I contemplated that but decided to wait it out. Judging by how they've treated me, they would have (1) cancel every OzBargainer's order, and (2) send out a really rude email to piss everyone off so no one would ever buy from them again.

      • Aussie based or international? Name?

        • +31

          I didn't ask for sympathy. I'm interested in other's thoughts on the legitimacy of their threat.

          I also think they could have approached the situation in a much better (more personal) way, which is more likely to get what they want.

          Them barking at me and trying to use big scary words on me didn't work. If they came at me saying 'hey just wondering where you got the coupon from? We're not a multinational corporation. We're asking nicely you either pay or return the item' I'm more likely to oblige.

          • +12

            @fortunecookie: Another option could have been, "Hey, this is our cost price. We would appreciate if you made payment for this amount so that we are not out any money, but you still get a good deal"

            • +8

              @Miss B: Cost price is the business's problem, not the consumer. You can't get buyer's remorse as a consumer and say "this was my give-enough-of-a-crap-to-buy-it price, I would appreciate if you refunded the difference".

              If you don't want people using 90% off coupons, nobody forced you to make one.

  • +11

    Block them every which way you can. So you don't have to keep reliving the moment.

  • +14

    They should be thanking you for not buying more. Some people are so ungrateful.

    • +1

      He didn't say how much he spent when people asked. He must have spent a lot, otherwise the seller wouldn't be threatening legal action.

  • +5

    Sounds like a HN job. They delivered to my door but then demanded much extra money. Now they know how my upright middle finger looks like so back went the stuff, the courier still sending invoices.
    JBHiFi not much better, big special price on an item and after an hours wait for it to get near me they stated the can't do it for what we advertised so even they know my finger!

  • +19

    lol

    Tell them they’re dreaming.

    You made an offer to purchase and they accepted by taking payment and delivering the goods. It’s their problem they don’t have adequate processes in place to have coupon codes expire.

    Legal action will cost them thousands of dollars with little chance of success.

    Tell them you gave them a valuable business lesson and they should be paying you for the education

  • -4

    If there were published terms and conditions, including something along the lines of "by using this coupon you accept our terms and conditions", and you violated one of them, you may have committed fraud by using the coupon.

    That said, it has to be worth the time and cost for the seller to actually do anything about it other than just threaten.

    • +4

      Couldn't find any published terms and conditions for that specific code, but I get your point. Usually by using the code, the presumption is that you accept the attaching T&Cs.

      I have thought about the fraud argument, but it requires an element of 'dishonesty' and 'deception'. I'm not sure if the use of a targeted coupon code would quite fit the bill.

      • +10

        well the question is was that targeted coupon targeted at you? or have you found this on one of those dodgy coupon sites or forums and reused someone elses? if it was targeted then arguably it is most definitely dishonest to use if it wasn't targeted at you.

      • It's their responsibility to make T&Cs available. You are not bound by T&Cs it didn't have available or require you to view and accept somewhere in the process. They had an invitation to treat, you made an offer, they accepted it and delivered - done. If you weren't required to view the T&Cs of the coupon code or similar as part of the transaction and confirm you complied - its their loss.

        Save some screenshots of where you got the code, the retailers website (do a dummy click through to show nothing comes up about T&Cs etc) to keep on file just in case but not be too worried.

    • +22

      Violating a retailers terms and conditions does not constitute fraud

        • +16

          OP had no intention of deception. He/she simply used a discount code that was accepted by the merchant and the merchant accepted the offer and delivered the product. They had ample opportunity to decline the transaction

          • -3

            @Dollar General: I agree with your 2nd and 3rd points.

            1st point: c'mon man…

            • @Ulysses31: Even if OP was being deceptive, fraud is a criminal matter and the retailer will need the police to file charges, which is extremely unlikely

      • Violating them isn't even unlawful if you weren't disclosed them and made to agree to them…. its not even relevant.
        I agree with your statements here 100% DollarGeneral

  • +5

    Very curious as to how much the discount was that it prompted the company to send a bogus threat email

    • +1

      Very curious as to how much the discount was that it prompted the company to send a bogus threat email

      Ah, you mean in dollar terms. Yes, good question.

    • +5

      Obviously we're not talking about $5 pair of socks. It's sub $1,000.

      • More than $500?

      • +4

        Transaction is complete and you have the product. Give us more deets pls!!!

      • +15

        Can’t you just say what you bought and how much the discount was 🙄

      • +7

        Sub $1000 before or after the discount?

        The context around your purchase changes a lot of what I and OZB would respond.

        Buying a $1000 watch which is regularly 50% off and you got for 90% off? Thats one thing.

        Getting a $9000 item for $900 post discount - thats a different story and I can understand them sending something legal.

        • +6

          Both the item itself at their ridiculously inflated RRP and the discount are sub $1,000

          • +4

            @fortunecookie: They’ll spend far more in legal fees than they would ever manage to reclaim (which would likely be $0 anyway).

          • @fortunecookie: Ignore the letter and wait for them to chase it up. I doubt they will.

          • +2

            @fortunecookie: If its under $1000 then its considered petty with no punishment as its under small claims court. Maximum would be returning item with refund. In all likelihood you would win easily anyway. They don't want to go to court, its a scare tactic. As court fees are at least $300 to file. No debt collector would be stupid enough to take this on either. Also for small claims there are no lawyers involved.
            I believe only Judge Judy handles these cases.

      • Nothing's gonna happen with a sub 1,000 item. I had 6,000 stolen and they even had CCTV of the person using my card at the shop. Multiples times. They returned my money and the police said it's too small for them to bother taking any action even with the evidence.

  • +1

    Tell us who they are

    • -2

      Probably Temu

      • +12

        Temu is a "medium size" business?

        • +1

          Medium compared to trillionaires

      • +4

        Doesn't temu do 100% off all the time anyway?

        • Yeah i furnished my newly-built house solely from 100% off items from temu.

  • +8

    Cough up the details.

    • +9

      Agreed. This bloke is asking for help and is then refusing to answer several questions like yours on the details. He's even vague with the item and the amount.

      He seems to have taken from the business to a point they're unhappy and now wants to take the time from OzBargainers without bothering to reply.

  • +8

    "see you in small claims court"?

    They published the coupon, you used it, there was an offer to purchase for $X, they took your money, delivered it. Done.

    • Sale fulfilled as far as I'd be concerned. Inform them in writing if they want to go to court you'll be claiming all costs when they lose, and you've got a very good job.

      • Inform them in writing

        Why would you even bother doing this. Just ignore them.

        • You can present to the tribunal or magistrate as proof of their time wasting

  • +5

    As far as I can see, not your problem.

    You placed a purchase order on their website using a code that their system accepted as valid. They accepted your offer to buy at that discounted price and took your payment. There is a binding contract there. They did not even attempt to rescind that contract before delivery.

    If they didn't set up their system properly (including the IT/ ordering system and the human oversight), that's their problem. That's the same as if a shopkeeper sold something to you for less than the amount they should, as long as you've paid the amount you were asked to, you've fulfilled your obligation under the contract and you now own the item. (The business can't claim that because the shopkeeper had made an error and the transaction is invalid because the shopkeeper was acting as the business' agent.)

    You're not even obliged to tell them where you got the code from or to explain how the T&Cs of that code makes it applicable to your purchase.

    Even if there is a clause in the contract that says they have the right to change their mind after confirming and fulfilling an order, the best they could do would be to ask for the item back. They can't possibly force you to buy it at a higher price than what you initially agreed to. (Imagine the madness the world would become otherwise.)

    • +4

      Yea I agree with you. From a contractual point of view, by dispatching the item, I take it as they authorise me to use the code. Their authorisation cannot be revoked retrospectively as it fundamentally changes the key contract terms.

      I'm thinking about what to do next. Should I simply ignore them, or write back to tell them they have no legal basis to pursue any further payments? Hmmm

      • +1

        Moral dilemma. Will this actually cause damage to someone's business or will someone lose their job?

        Not your problem, but you may feel that you can lessen the impact or ignore it.

        • +3

          The business will probably dismiss or performance manage the accountable person regardless of whether the money comes back. The process or control has failed.

          • +4

            @niknikniknik: Unless the business is not (yet) aware of the issue and it's the accountable person trying to get the money back.

      • You seem to have too much time to think. Enjoy the item and move on.

  • +30

    Offer to sell the item back for cost you paid plus a $900 restock fee.

  • +1

    Their own fault for not keeping track

  • +2

    Ignore them.

    • -2

      That would be rude

      • +2

        As opposed to

        A few weeks later, the retailer came back to me asking for the full payment of the item and threatened legal actions.

        • -2

          At least they weren't being ignored.

  • +2

    Did you break in to their web site and change pricing before payment? No? You used a code the retailer accepted and verified as being legitimate? I would say you did nothing wrong.

    If the code generated an invalid discount then it should have been caught by the shipping team. Better luck next time to the retailer, they should keep better track of what they're selling, and more importantly, which discounts are valid.

    Now the only way I would say the retailer might have a case is if the customer abused the discount and ordered hundreds of items, but even there it's up to the business to keep track of what they're selling.

  • +3

    It's a done deal — ignore any further attempts to engage.

  • +7

    I will ignore them. I will in fact check to see if that coupon still works and buy something more with it.

    • so they can get money and not send the order. You have to chase charge back. I won't risk it further.

    • I wouldn't do that.

      They've now told you they have no intention to be legally bound to a contract with that term.

      Doing that does give them a legal advantage now. Whether they pursue that advantage is their choice, however.

      • Fair point. It's also up to them to safeguard their systems and ensure a coupon on the public domain doesn't apply if they don't want it to. Or at least don't fulfil the order, but I do understand what you're saying.

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