Human error meant that a Hitachi monitor was offered last year on the Buy.com site for $164.50 instead of $588 over a period of 4 days. Buy.com said it would honour the stated price for the 143 monitors that it had in stock, but that it would cancel all other orders. It subsequently changed its terms and conditions for future sales on its site to provide that it reserves the right to cancel or refuse orders for items offered at an incorrect price.
Approximately 7,000 customers whose orders for the monitor were refused brought a class action lawsuit against Buy.com. The terms of the settlement, which is subject to court approval, provide that after legal expenses, each customer will receive about $50.
In the UK, a similar dispute arose when Argos offered televisions on its web site for £2.99 instead of £299. Although legal action was rumoured, it did not proceed.
For information on the risks and problems of contract formation on a web site, see our guide, On-line Contract Formation.
