Price not binding after consumer informed (2013427507) [2013] ZACGSO 9 (22 June 2013)

Price not binding after consumer informed (2013427507) [2013] ZACGSO 9 (22 June 2013)

The supplier was bound to sell the first couch at the displayed price of R199.99 as the consumer had not yet been informed of the error and had acted to purchase the item. Once the supplier corrected the error and informed the consumer, it was no longer obliged to sell additional couches at the incorrect price. The Consumer Protection Act section 23(9) provides that a supplier is not bound by an obvious pricing error after taking reasonable steps to correct the error and inform affected consumers. The evidence did not allow a firm finding on whether both couches were attempted to be purchased simultaneously, but the supplier's version was accepted for the purposes of this adjudication....

Citation
[2013] ZACGSO 9
Parties
Applicant: Ms N; Respondent: Supplier (Store in Rosebank)
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
22 June 2013
Case Number
2013427507
Procedural Posture
Consumer Complaint / Adjudication
Outcome
Complaint dismissed in respect of the second couch; supplier not obliged to sell more than one couch at the erroneous price.
Judges
N Melville
Legal Topics
Consumer Protection Act, Displayed Price Error, Advertised Price, Contract Formation, Risk Allocation
Commercial and Corporate Consumer Protection Act Displayed Price Error Advertised Price Contract Formation Risk Allocation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Ms N

Applicant

Supplier (Store in Rosebank)

Respondent

Procedural Posture

Consumer Complaint / Adjudication

Legal Issues

  1. 1 Whether a supplier is bound to sell goods at an incorrectly displayed price after informing the consumer of the error.
  2. 2 Whether the supplier was obliged to sell more than one couch at the erroneous price.
  3. 3 How section 23 and section 30 of the Consumer Protection Act apply to displayed and advertised prices.

Ratio Decidendi

The supplier was bound to sell the first couch at the displayed price of R199.99 as the consumer had not yet been informed of the error and had acted to purchase the item. Once the supplier corrected the error and informed the consumer, it was no longer obliged to sell additional couches at the incorrect price. The Consumer Protection Act section 23(9) provides that a supplier is not bound by an obvious pricing error after taking reasonable steps to correct the error and inform affected consumers. The evidence did not allow a firm finding on whether both couches were attempted to be purchased simultaneously, but the supplier's version was accepted for the purposes of this adjudication....

Court Disposition

Complaint dismissed in respect of the second couch; supplier not obliged to sell more than one couch at the erroneous price.

Orders

  • The supplier is not required to sell the second couch at the incorrect price.
  • The supplier should implement measures to prevent future pricing errors and comply with the principles set out in this ruling.