Sent cheaper item by mistake; Costco refuse to refund the difference, only full return

seanb89

I purchased some Armagnac from Costco on their website; they sent me the wrong year, and the presentation box was smashed. The entire range is completely out of stock so they are unable to send me what I ordered.

I would like to 

• Keep the product they sent
• Receive a refund for the price difference
• Box issue is annoying but I plan to drink it, not sell it, so not a deal breaker

I have been told that they cannot offer a price adjustment and therefore I need to return the item in order to get any money back.

In summary:

• Item purchased on June 8 (11 days ago)
• Paid online
• Used Credit Card
• Cheaper item received, my item out of stock
• Cannot refund me the price difference, can only fully refund on returning the product
• I would like to keep the product and refund the difference

I would like to know what I can do to both get my price difference refund and keep the package - if I return it, I'll end up with my money back, but with no product. Not entirely sure what the rights are when you get a worse product than you paid for, but seen lots of examples of the opposite!

the_lunatic_is_in_my_head

As a repair isn't possible and they don't have stock to replace you have the final right to reject for a refund or a price reduction.

A price reduction is typically the difference between what was paid for and what was received which sounds easy to apply in this instance.

You can remind Costco of your rights with the below, assuming you are a consumer rather than trader  

https://www.legislation.gov.uk/ukpga/2015/15/section/24

Right to price reduction or final right to reject

(1)The right to a price reduction is the right—

(a)to require the trader to reduce by an appropriate amount the price the consumer is required to pay under the contract, or anything else the consumer is required to transfer under the contract, and

(b)to receive a refund from the trader for anything already paid or otherwise transferred by the consumer above the reduced amount.

(2)The amount of the reduction may, where appropriate, be the full amount of the price or whatever the consumer is required to transfer.

(3)Section 20(10) to (17) applies to a consumer's right to receive a refund under subsection (1)(b).

(4)The right to a price reduction does not apply—

(a)if what the consumer is (before the reduction) required to transfer under the contract, whether or not already transferred, cannot be divided up so as to enable the trader to receive or retain only the reduced amount, or

(b)if anything to which section 20(12) applies cannot be given back in its original state.

(5)A consumer who has the right to a price reduction and the final right to reject may only exercise one (not both), and may only do so in one of these situations—

(a)after one repair or one replacement, the goods do not conform to the contract;

(b)because of section 23(3) the consumer can require neither repair nor replacement of the goods; or

(c)the consumer has required the trader to repair or replace the goods, but the trader is in breach of the requirement of section 23(2)(a) to do so within a reasonable time and without significant inconvenience to the consumer.

Alderbank

Your rights are to return the faulty goods and get a refund. That's all.
Consumer law permits them to bargain with you for a price reduction and you keep the faulty goods but they don't have to.

Perhaps their business model is that it is too much bother to determine an appropriate price reduction in each case. Perhaps they are concerned that buyers might damage the box just to get a price reduction. Perhaps there are other scams possible.

Their choice though.

seanb89

Thank you both for this - I'll go back to them and give them the price difference (the out of stock products and prices are still online) and also gently quote the section of the law as above. Hopefully I get the reduction and don't have to return it! Wonderfully rare item, even if the cheaper one, so quite loathe to part with it.

boobyd

"A price reduction is typically the difference between what was paid for and what was received which sounds easy to apply in this instance"
Just a question,Alcohol has a minimum pricing level,what happens if that's why they won't reduce,does Consumer law trump Licencing law so only a return is possible?Curious

user1977

boobyd said:

Alcohol has a minimum pricing level

Only in Scotland and Wales.

boobyd

user1977 said:

boobyd said:

Alcohol has a minimum pricing level

Only in Scotland and Wales.

Yeah i know that's MUP,
England has the minimum of Alcohol Duty plus vat ,don't know what it would be?

the_lunatic_is_in_my_head

boobyd said:

"A price reduction is typically the difference between what was paid for and what was received which sounds easy to apply in this instance"
Just a question,Alcohol has a minimum pricing level,what happens if that's why they won't reduce,does Consumer law trump Licencing law so only a return is possible?Curious

If you're able to find what you received being sold to make the price comparison I would assume that comparison price complies with the min unit price? 

Alderbank said:

Their choice though.

@Alderbank

What are you basing this on? 

seanb89

To clarify on the pricing, they were selling what I wanted for 1 price, and what I got for another price. What I've requested is the price difference between these two prices. Its the same product, just a different year statement on the bottle. The price difference is £35 exactly, which is why I am confused as to their response. The scarcity of the product is quite high unfortunately. I will say - Costco online has mangled 4 out of 5 orders I've placed on there, and this is the last one I'm trusting them with.

Minimum costs per unit wise, I'm based in England, and am a regular consumer as opposed to tradesman. Its definitely above this price though. 

Alderbank

the_lunatic_is_in_my_head said:

boobyd said:

"A price reduction is typically the difference between what was paid for and what was received which sounds easy to apply in this instance"
Just a question,Alcohol has a minimum pricing level,what happens if that's why they won't reduce,does Consumer law trump Licencing law so only a return is possible?Curious

If you're able to find what you received being sold to make the price comparison I would assume that comparison price complies with the min unit price? 

Alderbank said:

Their choice though.

@Alderbank

What are you basing this on? 

Consumers do have a right to a price reduction but only in some circumstances, it's not an unqualified right. 
These circumstances are defined and are typically where repair or replacement is impossible or where repair has been attempted unsuccessfully, such as where the restoration of a family heirloom or work of art has been bodged.

The reason why the consumer does not always have the right to say after a purchase 'I claim a 30% price reduction back for these goods but I do not have to return them' is presumably because that would be open to abuse.

The exemptions would not normally apply to a bottle of liquor although they could if it is exceptionally rare and there are only a few bottles known to exist.

I believe the relevant parts of CRA 2015 are s20(11) and s20(12) but I do find these difficult to understand:

(11)To the extent that the consumer transferred anything else under the contract, the consumer is entitled to receive back the same amount of what the consumer transferred, unless subsection (12) applies.
(12)To the extent that the consumer transferred under the contract something for which the same amount of the same thing cannot be substituted, the consumer is entitled to receive back in its original state whatever the consumer transferred.

I think the intent of those is to prevent the restorer from saying, 'If I have to give you 50% of the restoration fee back then 50% of the restoration work belongs to me.'

Lots here I'm not sure about. I look forward to any comments with interest.

PS: the minimum pricing here in Scotland for a bottle of spirits is about £14. The OP would be exceptionally lucky to get a nice bottle of vintage Armagnac reduced to that, even from Costco!

Jonboy_1984

seanb89 said:

I will say - Costco online has mangled 4 out of 5 orders I've placed on there, and this is the last one I'm trusting them with.
 

What other remedies have they applied to these other orders.

if you are making multiple similar complaints, they may want the product back to investigate further and ensure there is not a scam going on (not suggesting you are, but a serial complainer is not a profitable customer long term, and some people do try and take advantage if they see a possibility).