Yet another pricing 'blunder' at an online store
A problem that seems to be reported with some familiarity is the error in pricing on webmalls as to the pricing of their goods. The problem has been around since the boom on online commerce but despite the growth of ever more stable and reliable solutions, the pricing mistakes continue to happen to the displeasure of many customers. The latest reported here is Apple's Online Education Store that priced an Olympus camera at only 98.70 sterling pounds. The camera normally retails for 600 pounds.
In the past retailers online succeeded in avoiding concluded electronic contracts on the defence that the buyer had bought the goods in bad faith - usually shown by the purchased of dozens of the mispriced items. The problem for Apple and other retailers is - if a buyer only buys one unit of the goods - is there grounds to allege bad faith?
With the ever growing outrage of how easy retailers can renege on the agreements made online, is it an impossibility for law makers to raise the retailer's liability to strict liability for their pricing? While this is a matter of conjecture for now - consumer protection for online transactions - especially for those who legitimately bought the goods believing the price to be right as well as with good faith - should have some recourse and protection.
Furthermore, the expensive web commerce solutions are nothing like the retail shops and malls where price labels are manually stuck on the goods. The system in many of these retailers have state of the art inventory and pricing systems that work in conjunction with their payment systems. Can they really be able to claim to an honest mistake by their pricing system?
Consider the Singapore Electronic Transactions Act which provides inter alia that the transactions sytem will be deemed as an agent of the owner. Thus if an 'agent' quotes a wrong price - the principal is bound to the agent's words. Unfortunately this provision has yet to be tested in the courts. But it is clear from this provision that the legislators do not place much credence on online retailers claiming that their machines are had not been properly configured and it is designed to make them accountable.
Apple pricing 'blunder' caught on camera - WebWatch - Breaking Business and Technology News at silicon.com
In the past retailers online succeeded in avoiding concluded electronic contracts on the defence that the buyer had bought the goods in bad faith - usually shown by the purchased of dozens of the mispriced items. The problem for Apple and other retailers is - if a buyer only buys one unit of the goods - is there grounds to allege bad faith?
With the ever growing outrage of how easy retailers can renege on the agreements made online, is it an impossibility for law makers to raise the retailer's liability to strict liability for their pricing? While this is a matter of conjecture for now - consumer protection for online transactions - especially for those who legitimately bought the goods believing the price to be right as well as with good faith - should have some recourse and protection.
Furthermore, the expensive web commerce solutions are nothing like the retail shops and malls where price labels are manually stuck on the goods. The system in many of these retailers have state of the art inventory and pricing systems that work in conjunction with their payment systems. Can they really be able to claim to an honest mistake by their pricing system?
Consider the Singapore Electronic Transactions Act which provides inter alia that the transactions sytem will be deemed as an agent of the owner. Thus if an 'agent' quotes a wrong price - the principal is bound to the agent's words. Unfortunately this provision has yet to be tested in the courts. But it is clear from this provision that the legislators do not place much credence on online retailers claiming that their machines are had not been properly configured and it is designed to make them accountable.
Apple pricing 'blunder' caught on camera - WebWatch - Breaking Business and Technology News at silicon.com
posted by Harry SK Tan at
1/16/2006 06:15:00 pm
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