According to The Register, the wrong prices were active for over 24 hours before the checkout system was temporarily blocked to allow for system repairs. It is unknown how many orders were placed while prices were incorrect.
Worldpay, which processed the payments for Foris.co.uk, notified customers that their credit cards had not been billed and that they should consider the transactions void. The Register points out that the sums were in fact deducted automatically from customer cards, but that their bills are likely to reflect the corrected position before being seen.
For any e-tailer, pricing errors are a significant risk. Clearly, Foris does not want to find that it is legally obliged to sell products for one pence, which is a risk if order confirmation notices and web site terms and conditions are poorly worded.
In a similar incident earlier this year, Kodak.com misstated the price of a digital camera being offered for sale on its site.
The company initially refused to fulfil the orders but eventually capitulated, after legal action was taken by customers who argued that the company had entered into a binding contract and could not withdraw. The customers were able to cite wording that referred to a contract.
Struan Robertson, editor of OUT-LAW.COM, said:
"E-tailers can avoid this risk with appropriate wording in their order acknowledgements and terms and conditions. When an order is placed, it should be immediately acknowledged. This acknowledgement does not need to "accept" the customer's offer; instead, it can state that the customer's order is being 'processed' and that, if accepted, it will form a binding contract. The terms and conditions should reflect this and clarify the point at which a contract is formed."