According to The Register, the wrong prices were active for over
24 hours before the checkout system was temporarily blocked to
allow for system repairs. It is unknown how many orders were placed
while prices were incorrect.
Worldpay, which processed the payments for Foris.co.uk, notified
customers that their credit cards had not been billed and that they
should consider the transactions void. The Register points out that
the sums were in fact deducted automatically from customer cards,
but that their bills are likely to reflect the corrected position
before being seen.
For any e-tailer, pricing errors are a significant risk.
Clearly, Foris does not want to find that it is legally obliged to
sell products for one pence, which is a risk if order confirmation
notices and web site terms and conditions are poorly worded.
In a similar incident earlier this year, Kodak.com misstated the
price of a digital camera being offered for sale on its site.
The company initially refused to fulfil the orders but
eventually capitulated, after legal action was taken by customers
who argued that the company had entered into a binding contract and
could not withdraw. The customers were able to cite wording that
referred to a contract.
Struan Robertson, editor of OUT-LAW.COM, said:
"E-tailers can avoid this risk with
appropriate wording in their order acknowledgements and terms and
conditions. When an order is placed, it should be immediately
acknowledged. This acknowledgement does not need to "accept" the
customer's offer; instead, it can state that the customer's order
is being 'processed' and that, if accepted, it will form a
binding contract. The terms and conditions should reflect this and
clarify the point at which a contract is formed."
