What happens if you incorrectly price a product on your website?
If a £1000 item is advertised in a bricks and mortar store as being £100. A shopper may basket it and approach the checkout. The £100 price tag is not actually the retailer ‘offering to sell’ for this price, it is merely an ‘invitation to treat’. No contract is formed until you reach the till. An incorrect price on an item is therefore not legally binding. However, when the cashier asks for an amount of money in exchange for the goods you are intending to buy, he is making his offer and the consumer chooses to accept, negotiate or decline this offer. If the consumer accepts and hands over the money, a contract is established.
If a product is mispriced on the till however, this becomes the offer which a shopper can capitalise on regardless of the advertised price.
So what happens online? When something is mispriced on your ecommerce site and payments are automated?
When a consumer buys online, they rarely reach a human being who could spot the error. If you list an item at £100 which should be £1000, your customer will reach the checkout with only £100 in their basket to pay. Your website then makes the offer for the customer to accept or decline. This offer will contain the wrong price and the order will be placed, money will change hands and the contract has been formed. There is nothing you can do but dispatch or potentially face a lawsuit.
However there is a way to protect yourself, ignoring the terms and conditions, if the customer is told that their order has been accepted, whether on screen or by email; the sale contract is formed. Both you and the customer have accepted the deal and any attempt to cancel their order could be seen as a breach of contract.
However in this instance, we miss an opportunity to enter another contract (or amendment to the standard buy/sell contract). This contract is contained in your terms and conditions which a shopper should be forced to agree to as part of the purchasing process. In these terms and conditions many retailers get around the above problem by stating that no order has been accepted until dispatch and that payment will only ensure receipt of the offer but not the agreement of that offer. (Do not try to copy and paste this expecting it to be legally watertight as I’m a web developer not a lawyer.)
In other words the process has been re-ordered slightly. The customer is now being invited to treat, he then makes the offer to pay £100 for the items and it is up to the order processing staff or system to agree, negotiate or decline. This gives you the chance to intercept and correct.
It is therefore important that any post-payment messages on your website do not state that an order has been accepted. Emails and post-pay messages should declare that the order has been received or acknowledged and your terms and conditions should state why.
Human error is common, if you sell products or services online, don’t get caught out!
The inspiration for this article from Yahoo! Finance with real life examples can be found here (http://uk NULL.finance NULL.yahoo NULL.com/news/your-rights-when-stores-mis-price-items NULL.html)


A big part of marketing is about the image you project from inside your company as well as out. As someone who wants to come across as very helpful with a supportive and can-do attitude, I got into the habit of asking clients after my final invoice ‘How do you feel it went so far? All feedback is appreciated’
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