Legal Position - Where Seller increases the price?

star1_2

I wonder if anyone can help?

I placed an order on-line to buy some computers, the items were instock, I paid via credit card. When I checked later I noticed the website price had increased - I checked to make sure my credit card was going to billed correctly. It was going to be charged the correct/origional amount.

I thought it best to check with the company, so I called - they confirmed the goods would be dispatched as they were in-stock. I called again later, and was told that my order would definatly be dispatched, she even confirmed the delivery type I has requested!

Then less than 10 minutes later I receieved a call from the company telling me they could'nt supply the goods at the origional price I had ordered for. When I queried this, I was passed around various people, and was told "they did have stock, but not at the price I had ordered at - only the new/higher advertised price", the call ended with me saying I want the goods as advertised at the price advertised - and the company saying they couldnt supply them at that price. (Throughout the process (like a good boy scout, as I do with all my on-line purchases) I took screen-shots of my purchase, the stock levels, prices advertised and stock level at the new price.)

My question is? .... can they legally do this?

(I've spoken with consumer direct, who said it looks like they are in breach of contract - they are going to pass to the local trading standards)

in the meantime - I would appreciate anyone else's experience or thoughts?

Thanks :cool:

wobbley

I believe the 'contract' starts when your credit card is actually billed. If it has been billed with the original amount and they ask for more then I think this would be breach of contract. However if they have not billed your CC then you only had an 'invitation to buy' at that price and they are entitled to refuse or change that offer.

Debt_Free_Chick

You have to check the T&Cs to see when the purchase is deemed to be complete.

Justicia

I apologise as this is possibly of no help to you, but out of interest why did the price increase? Where the items originally in a "sale" when you first purchased? Or was it just a price revision that appeared to increase the prices?

Darksun

Usually they can change the price up until the time the credit card is billed, but if they change the advertised price they have to give you the opportunity to reject the order

star1_2

Thanks for the comments .... The Credit Card company confirm that a request for 'allocation of funds' was received in respect of my purchase - and at this point they legally regard this as 'accepting the offer to purchase' that I made. The allocation of funds is a gurantee that the seller will be paid for the goods when they collect funds, and it is standard policy for a seller to disspatch goods in the interim and then collect the actual monies some days later. They said this an intresting one as its normally purchasers who normally what to change their mind, not the other way around - they are on-my side (which is nice) and say that legally they regard the reservation of funds as acceptance of my offer to buy - therefore a legal contact has been formed between us !! ;-) !! fantastic ....

Have written long letter to seller stating this and numerous other things that verify they accepted the order and have stock !! - therefore should suppy as per the contractual arrangement that exists between us!

See what happens next - I guess !!

PS - The goods were at the lower price, this was then increased later. The supplier does not dispute this price - they just say they don't have any at this price anymore - but intrestingly are advertising the same specification at the new higher price, and offered the same produce to me at this new price. I fear a scam could be in operation - getting people to place orders, then leading them into beleiving they are to be furfulled then calling them last minute and telling them they can still have the goods if they pay the new higher price !!

teeceeare

Thats great from the CC company. Good for them. Remember that once they claim the money on the card, your availabile credit is reduced even before the actual money is paid to them.

Looks like you can hold them to the lower price whatever the position as to the binding nature of the terms and conditions.

I agree this looks like a marketing trick.

Keep us all posted as to what happens.

pin

I would contact your local trading standards office. They are pretty good at sorting stuff like this out. Let the seller know you've contacted Trading Standards. This should help them send the goods out to you for the price you oringinally paid.

Stonk

Normal practice for web companies is that the contract is formed when the goods are despatched. Yes, this sounded counter-intuitive to me too, but I've checked a few T&C's and it seems to be generally true! So I would say that in fact you DO NOT have a legally binding contract yet.

However, of course, your offer to buy was at a certain price, and if they turn round and increase the price then you must be given a chance to cancel at zero cost to yourself.

stugib

Another thing to consider is whether the price was obviously wrong. It doesn't sound like it in your case, but this is another angle sellers can use to get out of 'contracts', e.g. if a £500 computer was listed for £50 and they'd taken your money, they could probably get out of it. Sure you can imagine the kind of cases I'm referring to.

pin

Thing is on basic contract law, taking money can be treated as a sign of acceptance. Therefore performance needs to occur. If no performance occurs there is a breach of contract. Rectifying the breach the requriement is to put the parties in the position of if the contract had taken place, i.e. delivery of the goods.