Dispute Identification (201504-0174) [2015] ZACGSO 6 (5 May 2015)

Dispute Identification (201504-0174) [2015] ZACGSO 6 (5 May 2015)

The Ombud found that the supplier is bound by the displayed price of R2 199.99 for the sleeper couch. The contract of sale was perfected when the consumer indicated the intention to purchase and tendered payment. The supplier only became aware of the pricing error after the transaction was concluded, and did not comply with the requirements of section 23(9) of the Consumer Protection Act before the contract was perfected. The defence of 'snatching a bargain' is not available, as section 23(9) provides a closed list of exceptions. The supplier must honour the incorrect price, as the error was not obvious and the transaction was completed before corrective steps were taken.

Citation
[2015] ZACGSO 6
Parties
Applicant: Complainant; Respondent: Supplier
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
5 May 2015
Case Number
201504-0174
Procedural Posture
Consumer Complaint / Final Determination by Ombud
Outcome
The supplier is ordered to honour the displayed price and deliver the sleeper couch to the complainant at R2 199.99.
Judges
B Hughes
Legal Topics
Consumer Protection Act, Displayed Price, Contract Perfecta, Unilateral Mistake, Binding Offer
Commercial and Corporate Consumer Protection Act Displayed Price Contract Perfecta Unilateral Mistake Binding Offer

Case Brief

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Parties

Complainant

Applicant

Supplier

Respondent

Procedural Posture

Consumer Complaint / Final Determination by Ombud

Legal Issues

  1. 1 Whether the supplier is bound to honour the displayed price when the consumer has already paid for the item.
  2. 2 Whether section 23(9) of the Consumer Protection Act allows the supplier to refuse to honour the price due to an inadvertent and obvious error.
  3. 3 At what point is the contract of sale perfected under South African law in the context of displayed prices.

Ratio Decidendi

The Ombud found that the supplier is bound by the displayed price of R2 199.99 for the sleeper couch. The contract of sale was perfected when the consumer indicated the intention to purchase and tendered payment. The supplier only became aware of the pricing error after the transaction was concluded, and did not comply with the requirements of section 23(9) of the Consumer Protection Act before the contract was perfected. The defence of 'snatching a bargain' is not available, as section 23(9) provides a closed list of exceptions. The supplier must honour the incorrect price, as the error was not obvious and the transaction was completed before corrective steps were taken.

Court Disposition

The supplier is ordered to honour the displayed price and deliver the sleeper couch to the complainant at R2 199.99.

Orders

  • The supplier must deliver the sleeper couch to the complainant at the price of R2 199.99.
  • If the parties wish to comment or make further submissions, they must do so before 19 May 2015.