06/12/2021
IS AN ERRONEOUSLY DISPLAYED PRICE BINDING ON A SUPPLIER?
December holidays are synonymous with buying gifts, and nothing sparks a little more holiday cheer than an unexpected bargain. There are various provisions in the Consumer Protection Act (“CPA”) that governs the price of goods, the display of prices, and the determination of a fair price. More specifically, a supplier may not require a consumer to pay a price higher than the displayed price. Suppose you set out to buy an item and find it to be priced at R199, but when you get to the cashier, you are informed that the price was an error and that the correct price is R1 999. Is the supplier bound to sell the product to you at the lower price?
The CPA provides that if a displayed price contains an inadvertent (unintentional) and obvious error, the supplier will not be bound by the price after correcting the error and taking reasonable steps in the circumstances to inform consumers to whom the erroneous price may have been displayed of the error and the correct price.
Where the display price is so much lower than the price one would expect to pay for the item, that gives the impression of an obvious error, but this may not always be the case. In instances where slogans such as ‘ridiculously low price’, ‘once in a lifetime price’, or ‘one time only offer’ were used, an obvious error cannot be inferred easily. In our straightforward scenario, the supplier will be bound by the price until such time that the error is corrected, and reasonable steps have been taken to inform consumers about the erroneous price.
Although the legal provisions are clear, every case will need to be considered on its own merits. For more information, please contact us at 011 894 8123/4.