Incorrect price advertised: price not binding (Case 2) (20121024315) [2003] ZACGSO 1 (24 June 2003)

Incorrect price advertised: price not binding (Case 2) (20121024315) [2003] ZACGSO 1 (24 June 2003)

The supplier was not legally bound to honour the advertised price due to an obvious and inadvertent error, provided the error was corrected and reasonable steps were taken to inform consumers. Section 30 of the Consumer Protection Act applies to advertisements, while section 23 applies to displayed prices. In this case, no express limitation was stated in the advertisement, and the supplier acted to correct the error and apologise. Given the unclarified factual issues and in the interests of fairness and expediency, the ombud suggested a R100 voucher as compensation for transport costs and inconvenience, without prejudice.

Citation
[2003] ZACGSO 1
Parties
Applicant: Complainant; Respondent: Supplier
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
24 June 2003
Case Number
20121024315
Procedural Posture
Consumer Complaint / Determination by Ombud
Outcome
Suggested resolution: supplier to provide the consumer with a R100 voucher as compensation for transport costs and inconvenience, without prejudice.
Judges
N Melville
Legal Topics
Consumer Protection Act, Advertised Price Error, Displayed Price, Misleading Advertising
Commercial and Corporate Consumer Protection Act Advertised Price Error Displayed Price Misleading Advertising

Case Brief

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Parties

Complainant

Applicant

Supplier

Respondent

Procedural Posture

Consumer Complaint / Determination by Ombud

Legal Issues

  1. 1 Whether the supplier is legally bound to honour the advertised price despite an obvious error.
  2. 2 Whether the supplier's actions in correcting the price and informing consumers comply with the Consumer Protection Act.
  3. 3 Whether compensation for inconvenience and transport costs is appropriate in the circumstances.

Ratio Decidendi

The supplier was not legally bound to honour the advertised price due to an obvious and inadvertent error, provided the error was corrected and reasonable steps were taken to inform consumers. Section 30 of the Consumer Protection Act applies to advertisements, while section 23 applies to displayed prices. In this case, no express limitation was stated in the advertisement, and the supplier acted to correct the error and apologise. Given the unclarified factual issues and in the interests of fairness and expediency, the ombud suggested a R100 voucher as compensation for transport costs and inconvenience, without prejudice.

Court Disposition

Suggested resolution: supplier to provide the consumer with a R100 voucher as compensation for transport costs and inconvenience, without prejudice.

Orders

  • The supplier is suggested to provide the consumer with a R100 voucher as compensation for transport costs and inconvenience suffered.
  • If the supplier agrees, this resolution will be conveyed to the consumer.