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Subject: Re: UKNM: e-commerce own goal
From: Ray Taylor
Date: Fri, 10 Sep 1999 10:25:46 +0100

From: Robert Hamilton (brandwidth) <listsatbrandwidth [dot] co [dot] uk>

>> I read that Argos had consulted with ASA before making their
>> decision not to honour the orders.
>
>Surely it's trading standards, not advertising? The ASA have nothing
>to do with the former (wherever you read it!).

Since Argos will not honour an apparent offer made in an advertisement on
the internet, the ASA may have to consider a complaint in that if you offer
something in a print, poster, or internet ad, it must be honest, among other
things. Deliberately offering a product priced at �300 for �3 with no
intention of honouring the offer would be dishonest. Presumably, the ASA
advised them that they would consider the offer a genuine mistake, rather
than a dishonest offer. Argos might still have to answer complaints to the
ASA.

The real issue here is the existance of a contract between any customers who
ordered the product at �3.00 and Argos. Argos will no doubt argue that no
contract existed and that the mistake was obvious. Like a price ticket for
�3.00 falling on a �300 TV and sticking there.

Customer: "Oh, I'd like to buy that TV for �3.00, please"

Sales assistant: "I'm sorry, madam, that ticket appears to have got there by
mistake."

In order to make the contract stick, the customer would have to prove to a
court that the �3.00 price ticket was an "offer". In the normal course of
events a price ticket in a store is.

Then again, if the window display said "come inside for unbelievable prices"
perhaps the customer would have a good case. Who knows?

Also worth bearing in mind that any credit card companies involved are held
under the Consumer Credit Act to be a party to any contract that did exist.

Be interesting to see how it turns out.

But don't make the mistake of thinking this is new "internet" law. It ain't.
The principles involved are all well established. The only thing that's
questionable is whether or not the ASA has jurisdiction. Anyone know on what
basis the ASA claims jurisdiction over "internet advertising"?

Ray Taylor
Any apparent legal advice in the above should be disregarded since I have no
legal qualifications . If you want legal advice, ask someone qualified to
give it, not me

Have a nice weekend folks!
:)

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Replies
  Re: UKNM: e-commerce own goal, chris
  Re: UKNM: e-commerce own goal, Paul Douglas
  Re: UKNM: e-commerce own goal, Craig Pickup

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