Incorrect price advertised: price not binding (Case 1) (20145261021) [2014] ZACGSO 16 (2 July 2014)

Incorrect price advertised: price not binding (Case 1) (20145261021) [2014] ZACGSO 16 (2 July 2014)

The Ombud held that the supplier is not bound to sell the couch at the incorrectly advertised price. The advertisement in the catalogue constituted an invitation to treat, not a binding offer. Section 30 of the Consumer Protection Act prohibits misleading advertising but does not create an obligation to sell at the advertised price unless a limitation on quantity is expressly stated. Section 23(9) applies to catalogue advertisements and allows the supplier to correct inadvertent and obvious errors, provided reasonable steps are taken to inform consumers. The discrepancy between the actual price (R3 700) and the advertised price (R1 599) was so large that a reasonable consumer would...

Citation
[2014] ZACGSO 16
Parties
Applicant: Complainant; Respondent: Supplier
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
2 July 2014
Case Number
20145261021
Procedural Posture
Consumer Complaint / Adjudication
Outcome
Complaint dismissed. Supplier not bound to sell at the advertised price.
Judges
N Melville
Legal Topics
Consumer Protection Act, Bait Marketing, Misleading Advertising, Invitation to Treat, Advertised Price Liability
Commercial and Corporate Consumer Protection Act Bait Marketing Misleading Advertising Invitation to Treat Advertised Price Liability

Case Brief

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Parties

Complainant

Applicant

Supplier

Respondent

Procedural Posture

Consumer Complaint / Adjudication

Legal Issues

  1. 1 Is a supplier bound to sell goods at an incorrectly advertised price?
  2. 2 Does an advertisement in a catalogue constitute a binding offer or an invitation to treat?
  3. 3 Does section 30 of the Consumer Protection Act impose strict liability for misleading advertisements?

Ratio Decidendi

The Ombud held that the supplier is not bound to sell the couch at the incorrectly advertised price. The advertisement in the catalogue constituted an invitation to treat, not a binding offer. Section 30 of the Consumer Protection Act prohibits misleading advertising but does not create an obligation to sell at the advertised price unless a limitation on quantity is expressly stated. Section 23(9) applies to catalogue advertisements and allows the supplier to correct inadvertent and obvious errors, provided reasonable steps are taken to inform consumers. The discrepancy between the actual price (R3 700) and the advertised price (R1 599) was so large that a reasonable consumer would...

Court Disposition

Complaint dismissed. Supplier not bound to sell at the advertised price.

Orders

  • The supplier is not obliged to provide the complainant with a couch at the incorrectly advertised price.
  • The supplier is recommended to offer the complainant a nominal token of apology for wasted time and transport costs.