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Tescos Online Pricing Error


KevSB 10 1.5k 5 United Kingdom
14 Mar 2012 12:23PM
Tescos recently made the error of putting on line an offer of a new Ipad at 49.99, And obviously did not Honour this price as it was in the T&Cs That they had to right to cancel, It reminded me of debates on here in the past as this is quite a common occurrence with on line purchases, That people still think that an advertised on line price is binding in any way and get quite upset when the sale is canceled by the seller.

The comment under the article still show most peaple still dont understand this point, I can remember a simuler discussion on here ref the 5dmk2 when the price suddenly rose by a few hundred pounds.


http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9142569/Tesco-refuses-to-deliver-50-iPads-after-website-error.html#disqus_thread

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User_Removed 5 1.4k England
14 Mar 2012 12:40PM
PR stunt.
keithh e2
11 23.4k 33 Wallis And Futuna
14 Mar 2012 1:00PM
Not a very good one then.
User_Removed 10 3.3k 4 United Kingdom
14 Mar 2012 1:52PM

Quote:PR stunt.


If nobody had heard of "Tesco" and the incident showed them in a good light as a competent company then maybe - but no, it's just an error.


Quote:peaple still dont understand this point,


Yes, it's such an urban myth, I've often heard the "bloke in the pub" affirm that "if they price it at that then they have to honour that price".
thewilliam 6 4.9k
14 Mar 2012 2:46PM
I'm surprised that they were able to back out of the deal AFTER taking the punter's money.

In law, a contract exists when a merchant has accepted full payment. Is it legal for them to have T&Cs that allow them to back out - Unfair terms in Contracts Act 1973?
mikehit e2
5 7.1k 11 United Kingdom
14 Mar 2012 2:53PM
The exchange of goods has not happened so no sale has been completed. Most pre-orders like that allow the buyer to pull out before delivery so it will work both ways.
Think of the situation where there is a projected release of a product and they take pre-orders. If the product is then cancelled due to manufacturing errors or design flaws, that would leave the vendor open to legal action which would be clearly unfair.

Equally contract law does permit cancellation of a contract if there is a clear imbalance of obligations - it is not often enforced because it is so hard to prove but the mechanism is there.
14 Mar 2012 9:42PM
Contract law on sale of goods is well settled.

A seller, on line or in shop premises is not, in contractual terms, offering goods for sale, it is an invitation to treat.

The prospective purchaser is offering to buy at the price indicated by the seller. There is no contract unless and until the seller accepts the purchaser's offer to buy at that price.
Coleslaw e2
9 13.4k 28 Wales
14 Mar 2012 9:48PM

Quote: I'm surprised that they were able to back out of the deal AFTER taking the punter's money

I thought so too. I thought once they take the money, then a contract is formed?
KevSB 10 1.5k 5 United Kingdom
14 Mar 2012 10:00PM
I don't believe they had taken any cash as it was pre-order, just journalist adding that line for drama, My understanding is that the cash is taken on shipping.

And believe you are also correct once the cash has been taken then a contract is made, although it may be that a deposit was taken which im not sure where that lays in legal land.
Coleslaw e2
9 13.4k 28 Wales
14 Mar 2012 10:04PM

Quote: My understanding is that the cash is taken on shipping

hmmmm....for preorder, why would they need take the money on shipping first?
KevSB 10 1.5k 5 United Kingdom
14 Mar 2012 10:10PM
That's what I'm saying, the iPad is not in the shops yet as demand is so massive, so orders was in a very large queue, and nearly all sellers do not take the cash untill it's being shipped including tescos. So where the quote about cash being refunded came from I do not understand.
Unless a deposit was taken of whic I have no idea if this was so

This explains it better, even tho it is the sun

http://www.thesun.co.uk/sol/homepage/news/money/4195310/Tesco-refuse-to-honour-offer-of-iPads-for-under-50.html
Coleslaw e2
9 13.4k 28 Wales
14 Mar 2012 10:30PM
ah....I totally misread what you said, Kev.

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