FTO AUSTRALIA

Does anybody know my rights around false advertising??
I purchased a lens for my camera yesterday ($2200) -because it was a great price for that lens. Today I get a call from the manager of the shop telling me that they had marked the wrong price (it was an updated version that should have cost $3300) and now want me to pay the difference. He goes on to say that he'll give it to me at the invoice price which he say is $3000! I very much doubt that they're only making $300 profit on a $3000 lens! I was quoted that price a month ago retail at a different shop.

As I understand it they are liable for their mistakes, esp. now that the sale is complete and I have no obligation to make up the difference... am I right???

My big concern is that I made the purchase with my credit card and I'm worried that they'll just process the extra payment without my permission.

Thanks for any help or advice.

I used to work at a camera shop and a 10% mark up on a $3000 lens sounds about right. The industry has become very competitive and margins are small.

I don't know your rights as far as paying the difference is concerned but I would be very surprised if the law wasn't on your side. However, mistakes do happen and having the retailer ask this from you is within their rights. They are hoping you are understanding and willing to pay the difference. It is however your choice what you do.

If they charge your credit card without your permission, they can get into HUGE trouble and end up losing a lot more than $700. If they do, you can call your bank and cancel the payment. They will ask the retailer to prove that they have a docket with your signature on it for that date / time / amount. If they can't, the transaction is reversed.

Consider yourself in a position of power. I have seen a business go bust because the bank froze the bank accounts from one day to the next because of these reversed transactions. (The owner was running an online business and followed the banks policy regarding card not present transactions but too many dodgey transactions and the bank froze the accounts without even a phone call. This ended up in a court case where the owner of the business lost all his money to lawyers and had to declare bankruptcy.)

It is your choice. If you feel sorry for them, you can either return the product or pay the difference. If not you can tell them to shove it.

Applying the basic theory of contracts, you've made an offer and they've accepted it. You both provided consideration. They can't normally alter the terms once you've both discharged your duties.

The only relevant legislation that I can think of is the Trade Practices Act. I had a quick browse and there doesn't seem to be anything in there that would suggest that you are obliged to pay the full amount after your contractual obligations have been discharged.

My girlfriend's dad is a contracts solicitor, so I will ask him what he thinks when he comes home tonight.

on your invoice, does it say the right make and model of the lense. if it does, then case closed, tough titties to the camera shop.
if you make a mistake like that as a business, you write that off as a cost of doing business. with that said, a loss like that for a small business can be like working for free for the week. If you want to be nice to them return the lense or offer to pay all (or part, as a peace offering) of difference.
and they definitely can not charge your credit card again without your consent, if they do, u call the bank to reverse the charge, and if you want to be a real c*&t, report them.

Regardless of its value or what the description says... If they scanned something the was labelled incorrectly, and continued with the transaction ... You are OK ...

They can not charge you for the difference... My parents just had the same thing with a TV they bought .. They had the old price on the new model .. But the shop had to honour the transaction...

rock_it wrote:Regardless of its value or what the description says... If they scanned something the was labelled incorrectly, and continued with the transaction ... You are OK ...

They can not charge you for the difference... My parents just had the same thing with a TV they bought .. They had the old price on the new model .. But the shop had to honour the transaction...

THIS is spot on they cant do sh*t mate.

Dan25 wrote:Applying the basic theory of contracts, you've made an offer and they've accepted it. You both provided consideration. They can't normally alter the terms once you've both discharged your duties.

100% correct, this is pretty much exactly what we learnt in my contracts law unit, the transaction was a contract and a contract is final, even if they've made a mistake after the fact. All good for you but tough luck for them.

it's exactly the same as if a shop puts clothes on the wrong shelf & it gets marked as being $20 instead of the full price being $200

If they've screwed up the price labelling, they HAVE TO give it to you at the lower price - it's legislation

they can ask you to pay for it, but you have no legal obligation to do so.. they screwed up, not you & as said, if they charge your credit card, go straight to fair trading after calling your bank to reverse it

Sorry Mr C, you're wrong there. Shops are protected against that. If at the checkout they realise they've priced it wrong they are entitled to refuse to sell it to you for that price.

This is because the ticket price is only making an invitation to treat. When you approach the checkout you're making an offer, which they are entitled ro refuse.

In saying that, it's common policy at a lot of stores (eg Big W where I work) to allow customers to purchase the product for the incorrect price as a sign of good faith and to retain customer loyalty. Provided of course that it isn't a ridiculous reduction (ie from $200 to $20) - in that case we will simply refuse.

However, none of the above affects alekazam's case, as they accepted her offer and the transaction was completed.

Dan25 wrote:Sorry Mr C, you're wrong there. Shops are protected against that. If at the checkout they realise they've priced it wrong they are entitled to refuse to sell it to you for that price.

This is because the ticket price is only making an invitation to treat. When you approach the checkout you're making an offer, which they are entitled ro refuse.

In saying that, it's common policy at a lot of stores (eg Big W where I work) to allow customers to purchase the product for the incorrect price as a sign of good faith and to retain customer loyalty. Provided of course that it isn't a ridiculous reduction (ie from $200 to $20) - in that case we will simply refuse.

However, none of the above affects alekazam's case, as they accepted her offer and the transaction was completed.

That is absolutly correct. When I worked in retail, people were always swapping price tags. If we had to charge them at the ticketed price we would of lost hundreds a week.

tip for next time dont pay by credit card pay by cash then they wont be able to charge you and prob wont have any details of you

If everyone had that much cash there wouldn't be a need for credit cards would there

Your sweet tell then to get lost. But spending over 2k on lenses?? Damn!

I8A4RE wrote:

Dan25 wrote:Sorry Mr C, you're wrong there. Shops are protected against that. If at the checkout they realise they've priced it wrong they are entitled to refuse to sell it to you for that price.

This is because the ticket price is only making an invitation to treat. When you approach the checkout you're making an offer, which they are entitled ro refuse.

In saying that, it's common policy at a lot of stores (eg Big W where I work) to allow customers to purchase the product for the incorrect price as a sign of good faith and to retain customer loyalty. Provided of course that it isn't a ridiculous reduction (ie from $200 to $20) - in that case we will simply refuse.

However, none of the above affects alekazam's case, as they accepted her offer and the transaction was completed.

That is absolutly correct. When I worked in retail, people were always swapping price tags. If we had to charge them at the ticketed price we would of lost hundreds a week.

+1 this is all true

...tell them to f**k off and go enjoy your lens

btw when they rang you were they nice or where they like "im sorry for the error, but you will HAVE to pay $700)

I cant see UK law being that far removed from the rest of the world and over here the only way shops can claw back an incorrectly priced good is if it is purchased remotely, ie by the internet, and if it is a very obvious mistake that has been made. eg a $1000 telly going for $10.

You thought you had a good deal so you offered the price asked and paid it. They had the chance at the time to notice, they didn't.

Bill

Now from a country with a well hung Parliament

Damn snivelling lawyer types..
I've done some IT in solicitor offices...
/wrist

Lol, to the OP..what ppl have been saying sounds about right. It's been awhile since i read a law book but rings some basic law theory bells.

You guys rock, thanks for all the info, I ended up calling my bank and let them know what happened and having taken note of it they said I wouldn't have any prob contesting it if they took the money out without my permission. I would have met the guy half way but he was so rude on the phone, implying that I'd known what was happening... f**k him, I'm loving this lens even more now!

Yeah i was gonna say that the business would be losing money due to their mistake, but once the sale is made they have no rights to alter it, and if he's being a rude prick about it, f**k him lol!!

i dont know if anyone remembers this?
but JB hi-fi had an internet one running awhile ago where they put tvs up for like $100 instead of $1000?
and lots of people bought them
there was a massive case about it
i dont remember the results but if i find them ill post them up here
im pretty sure the customers won

Once the contract is complete (goods are paid for AND delivered) it's pretty hard for the retailer to recoup their mistake. However if the goods haven't shipped this is another matter. Dell is another regular with mistakes online. There are forums dedicated to broadcasting these 'mistakes'.

If you're lucky enough to have your order shipped before they notice you get a bargain, otherwise the order gets cancelled. Same principle as mentioned above with ticketing & checkouts.