Refusal by supplier to sell at the displayed price: display price binding (20131118951) [2014] ZACGSO 14 (1 July 2014)

Refusal by supplier to sell at the displayed price: display price binding (20131118951) [2014] ZACGSO 14 (1 July 2014)

The supplier is bound by the displayed price once the consumer indicates acceptance by placing the goods on the counter or otherwise communicating acceptance. Section 23(6) of the Consumer Protection Act prohibits charging more than the lowest displayed price, and section 23(9) only allows the supplier to escape this obligation if the error is corrected and reasonable steps are taken to inform consumers before the transaction is concluded. In this case, the supplier only became aware of the error after the consumer had indicated acceptance, and the requirements of section 23(9) were not met in time. The common law defence of 'snatching a bargain' is no longer available, as the CPA...

Citation
[2014] ZACGSO 14
Parties
Applicant: Complainant; Respondent: Supplier
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
1 July 2014
Case Number
20131118951
Procedural Posture
Consumer Complaint / Adjudication
Outcome
The supplier is bound by the displayed price and should honour the incorrect price, but the complainant withdrew her claim after acknowledging she queried the price before acceptance.
Judges
N Melville
Legal Topics
Displayed Price Binding, Consumer Protection Act, Offer and Acceptance, Unilateral Mistake, Invitation to Treat
Commercial and Corporate Displayed Price Binding Consumer Protection Act Offer and Acceptance Unilateral Mistake Invitation to Treat

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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 the price displayed when the consumer indicates acceptance?
  2. 2 Does section 23(9) of the Consumer Protection Act allow a supplier to refuse to honour an obvious pricing error after the consumer has accepted the displayed price?
  3. 3 Has the common law defence of 'snatching a bargain' been displaced by the CPA provisions?

Ratio Decidendi

The supplier is bound by the displayed price once the consumer indicates acceptance by placing the goods on the counter or otherwise communicating acceptance. Section 23(6) of the Consumer Protection Act prohibits charging more than the lowest displayed price, and section 23(9) only allows the supplier to escape this obligation if the error is corrected and reasonable steps are taken to inform consumers before the transaction is concluded. In this case, the supplier only became aware of the error after the consumer had indicated acceptance, and the requirements of section 23(9) were not met in time. The common law defence of 'snatching a bargain' is no longer available, as the CPA...

Court Disposition

The supplier is bound by the displayed price and should honour the incorrect price, but the complainant withdrew her claim after acknowledging she queried the price before acceptance.

Orders

  • The supplier should honour the displayed price of R485.00 for the Nespresso Latissima Machine, but the complaint is closed as the complainant withdrew her claim.