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Incorrect Pricing - Where is the law to these days?

David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Incorrect Pricing - Where is the law to these days?

Recently I was looking for an AMD64 Processor, I used google which sent me to kelkoo and whatnot and spend hours searching. Eventually I remembered froogle, I had never tried it before so figured "what the heck" a quick search, a quick fiddle and up popped a cheap 64bit CPU, Clawhammer!

Now Clawhammer is AMD's *old* CPU, the price I thought was therefore reasonable, so I bought it, well placed my order.

The CPU in question is a AMD64 4000+ Clawhammer, 2.2Ghz on a 2000FSB with 1MB Cache, my friend told me "ya, the price you paid is about right" so I decided to check it out, I had never heard of clawhammer, few places actually sell them.

So I look around and discover the CPU I purchased, for £55 (just shy of £90 with VAT and P&P) is actually worth about £500.

In my email inbox is..

Invoice number: FSE-********




Quantity Name Item number Unit price Total price VAT
---------------------------------------------------------------------------------------------------
1 AMD Athlon64 4000 2.4 Ghz 5024 GBP 55.00 GBP 55.00 GBP 9.63 (17.5%)

---------------------------------------------------------------------------------------------------
Amount: GBP 55.00
Shipping costs: GBP 18.00
plus VAT (17.5 %): GBP 12.78
Total amount: GBP 85.78


Which as far as I know, resembles their acceptance of my offer of £55, and to top it all off, is actually an Invoice, as well as a VAT invoice, which I've been told makes it totally legally binding due to the VAT Man.

Now I'm no legal expert, my friend however has taken advantage of a few mispriced items and always won, but does anyone really know where the law stands on this, is it really now legally binding as the order has been confimed AND I have been sent an invoice?
27 REPLIES
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Incorrect Pricing - Where is the law to these days?

The question you need to ask yourself is where is this company based, and this wil tell you whether it's subject to "english" law.

An invoice in my mind would be an acceptance of a contract, which would make it legal.

However there are subtle differencies in the law regarding internet trading, which are worth checking out, but to my knowledge they are generally in favour of the consumer.

Aaron
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Incorrect Pricing - Where is the law to these days?

It is a UK based company, they phoned up today and started off with "that chip dont exist" to "it should have been a semperon" etc.. but they changed the price and nothing else to £555 from £55, so hmm.

I do have a Confirmation Of Order email invoice, so afaik that is their acceptance of my offer of £55, so I think its legal
N/A

Incorrect Pricing - Where is the law to these days?

Hi,

Well I'm not a lawyer, but a invoice to me would be an acceptance, since it means they accept your offer in a contract.

However you need to check with CAB etc. to ensure your rights.

However I think you have a case to answer, it's their mistake.
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Incorrect Pricing - Where is the law to these days?

There have been cases like this before where UK based companies have had products listed on their sites for a fraction of the real price, usually someone puts the decimal point in the wrong place i.e. £555 becomes £55.50, when they realise their mistake as they get a run of orders for the product they have simply frozen the orders. See this link for more info.

Unfortunately I think you are going to find that you will not receive this chip for £55.

Cheers
Andy
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Incorrect Pricing - Where is the law to these days?

but he did get an invoice, it's a very very gray area :-(
N/A

Incorrect Pricing - Where is the law to these days?

Yes I agree its a gray area, in the end I think its going to boil down to the terms and conditions of the site involved, as per the link I posted above Amazon, the site in question in that story, state that
Quote
their terms and conditions of purchase, which every customer has agreed to, make it clear that a legally binding contract for the sale of the goods concerned does not exist until they are physically shipped and the customer's credit card is debited.

So I would suggest a careful perusal of the terms and conditions for this particular site to see if you have a case. Would be interested to know one way or the other when you find out.

Cheers
Andy
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Incorrect Pricing - Where is the law to these days?

I checked their t&c, as far as they are concerned we enter into a contract as soon as the order is placed, I think I'm on pretty solid ground, but will have to try trading standards on Monday I guess :-/
N/A

Incorrect Pricing - Where is the law to these days?

Well good luck and let us know how it goes Smiley

Cheers
Andy
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Incorrect Pricing - Where is the law to these days?

Called Trading Standards today, I have to write via recorded delivery to the company stating, we have a common law contract which he must honour and he must deliver the CPU within 14 days!

In other words the law says he has to sell me the chip at the price stated and send it me, I believe this is due to the fact I have an invoice number.
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Incorrect Pricing - Where is the law to these days?

Sounds promising, I hope you get your cpu Smiley

I bet they will be changing their practice of issuing invoices prior to shipment / taking of payment pretty damn quick now :lol:

Cheers
Andy
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Incorrect Pricing - Where is the law to these days?

its a shame you never ordered 2 in the beginning Cheesy
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Incorrect Pricing - Where is the law to these days?

dgwebb:
Did you ever manage to get any joy on this?

Just being nosy. Wink
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Incorrect Pricing - Where is the law to these days?

Funny you should ask. I filled in a claim form with the court, which the company had until yesterday to reply to (14 days), so this morning I dropped in a request for judgement to the court as they didnt reply, so I've won by default, the judge just has to give his/her directions. Then the chips going on ebay for £400, and I'll buy a 3500+ 1GB Ram and a new mobo to go with the faster F9 connection in April Cheesy
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Incorrect Pricing - Where is the law to these days?

Sweet. Nice to hear a story about the "Little Guy" coming out on top. Must remember to keep my eyes open for bargains or even mistakes like that in the future.