LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

NSW Ordered Sound System Online - Seller Changes After Order?

Discussion in 'Australian Consumer Law Forum' started by Daffydill, 25 June 2015.

  1. Daffydill

    Daffydill Member

    Joined:
    25 June 2015
    Messages:
    2
    Likes Received:
    0
    Hello!

    I purchased a surround sound system from an company yesterday for $1,499.00, their advertised price on their website (which I have a screenshot of). I was aware this was a very good price for the system, so was very happy.

    Then, I received a call this morning from their manager to tell me the price was wrong, and really should have been $1,999.00. My credit card payment for the system has not yet been processed. He offered me $100 off the corrected price so I now have the choice to a) cancel the order, or b) pay $1,899.00.

    Are online companies allowed to just change pricing once you have placed an order like that under Australian Consumer Law?
     
  2. Ivy

    Ivy Well-Known Member

    Joined:
    10 February 2015
    Messages:
    498
    Likes Received:
    85
    Hi there.

    In short, no.
    If a company advertises two or more prices then they are legally obligated to sell for the lowest advertised price or withdraw all stock until the price has been corrected.

    However given that you already purchased the system for one price, they can't then charge you more in retrospect. Call back the company and tell them that you expect the system to arrive as per the price you agreed to pay online at the checkout when you entered your credit card details.

    If they refuse to comply, then you can contact Fair Trading in NSW and lodge a complaint.
     
  3. Daffydill

    Daffydill Member

    Joined:
    25 June 2015
    Messages:
    2
    Likes Received:
    0
    Thanks for the info Ivy. About 5 minutes after I purchased the system, they had withdrawn it from sale, and now it is back up on their site with the correct price.
    Their Terms and Conditions state the following:
    "
    2 The Customer acknowledges that XXXXXXX may vary the Conditions of Sale by notice to the Customer. The varied conditions shall apply 7 (seven) days after the notice has been posted on the website."

    If the advertised price was a legitimate error on their part, do they have the right to change the price?
     
  4. Ivy

    Ivy Well-Known Member

    Joined:
    10 February 2015
    Messages:
    498
    Likes Received:
    85
    No. What I said above applies.
    The company cannot abrogate the law by inserting a term into the contract of sale. Ie, that term of the contract more than likely breaches the Australian Consumer Law.
    You bought the good at an agreed price, the transaction went through and now they have to provide it to you and absorb the loss themselves.
     
  5. DennisD

    DennisD Well-Known Member

    Joined:
    11 July 2014
    Messages:
    179
    Likes Received:
    57
    Hi there

    The Australian Competition and Consumer Commission (ACCC) is pretty strict when it comes to correct and accurate price display by businesses. The key point is that businesses need to err on the side of caution.


    Please also see this thread, especially its final comment, which discusses the difference between, and different consequences which flow from, a genuine pricing mistake on the one hand and on the other hand pricing which a business simply refuses to honour.

    Let us know how it goes.
     

Share This Page

Loading...