This latest example, picked up by IT news site Silicon.com, is of a kind that resulted in negative publicity for the web sites of Argos, Kodak, Dabs.com, Amazon.co.uk and, most recently, Thai Airways.
Graeme McKenna placed his order on 18th July this year, and expected to receive the 2,000 CDs for the bargain price. His order was acknowledged by e-mail and funds were deducted from McKenna's card the next morning.
The e-mail acknowledgement followed best practice by stating: "This does not constitute acceptance of your order". But neither the acknowledgement nor the site's terms and conditions stated when the company does accept orders.
Only 20 CDs were actually sent to McKenna. When he questioned this he was told by the company that he had tried to take advantage of an obvious pricing error, that it would not fulfil the order, and that it would refund his money if he preferred.
According to Silicon.com, lawyers for the company sent an e-mail, justifying PC World's refusal to honour the order on the ground that "there is no way a purchaser could reasonably have supposed that 2000 CD's could be purchased for the sum of £27.75 plus VAT."
McKenna told Silicon.com, "At the time I truly believed they were clearing stock or it was end of line stuff. I don't think a judge is going to look favourably upon a company who changes their terms to suit themselves."
While the obviousness of the error could be a factor, the company's argument that the error in the price should have been obvious is one that has not been tested by British courts in relation to web sites. And McKenna could make a good counter-argument: that PC World Business was the party that set the mechanism for inviting and accepting offers so has to live with its errors.
Struan Robertson, editor of OUT-LAW.COM, commented:
"The laws on e-commerce give an e-tailer discretion over when to conclude a contract, but PC World Business has not taken advantage of these rules. While it is open to the e-tailer to decide that an order is accepted after the point when a credit card is debited, the e-tailer must be up-front about this. And this is where the PC World Business has made a mistake - because it does not say this on either its site conditions or in its acknowledgement.
"So Graeme McKenna could argue that the company implied its acceptance by taking his money."
McKenna told OUT-LAW.COM that he issued a small claim against PC World Business on 28th July. The Court Service has given the company until 16th August to respond.
Robertson concluded:
"This case highlights the importance for e-tailers of getting their order systems right. Pricing errors will occasionally happen, but if an e-tailer has suitable processes, web site terms and conditions and order acknowledgements, it can politely and legally refuse orders that are placed for items listed at incorrect prices. That avoids having to rely on a risky defence like the mistake being obvious enough to void the contract."