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Amazon Adjusts Prices After Sales Error
An anonymous reader writes "On December 23, Amazon advertised a 'buy one get one free' sale on DVD box-sets, but apparently did not test the promotion before going live. When anyone placed two box-sets in their cart, the website gave a double discount — so the 'grand total' shown (before order submission) was $0.00 or some very small amount. Despite terms stating that Amazon checks order prices before shipping, Amazon shipped a large number of these orders. Five days later (December 28), after orders had been received and presumably opened, Amazon emailed customers advising them to return the box-sets unopened or their credit cards would be charged an additional amount (more threads). Starting yesterday, Amazon has been (re)charging credit cards, often without authorization. On Amazon's side, they didn't advertise any double discount, and the free or nearly-free box-sets must have cost them a mint. But with Amazon continually giving unadvertised discounts that seem to be errors, is 'return the merchandise or be charged' the new way that price glitches will be handled?"
MOrality?
A price was agreed upon by both parties. If anyone is not being moral it's the person at Amazon who has decided to change the terms of the deal after the transaction has been completed.
The fact that the business failed because it was automated is a fault in theer business practice. It is not the fault of the customers. The customer can NOT know what the business has done or what deals the business has made, or what special promotions the business is running, or a myriad of other things.
If you got a notice right now saying you were undercharged 10,000 dollars for your car, would you pay?
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Have you ever looked at your check in a restaurant and noticed that the waiter forgot to charge you for something your ordered and ate? What do you do? I tell the waiter so they can add it to the check. Then I pay for what I ate. All of it. It's the right thing to do and that's the kind of society I want my kids to inherit.
In your world, there is no honor system. You'd sneer and leave the resaurant without paying what you owe. You'd pat yourself on the back while the restaurant owner struggles to pay his workers and keep the doors open.
In my example, there is a moral choice on the table. I made it one wa and you made it the other way. Who is the better man?
I don't think it is. Unjust Enrichment would be if the customer agreed to pay $50, but Amazon only charged them $5. Then the customer would be obligated to pay the remaining $45 because both parties agreed on the price of $50.
In this case however, Amazon meant to charge $50, but only charged the customers $0.01. The customers didn't agree to $50, they agreed to $0.01. Since, at the time, both parties agreed to the price of $0.01, it doesn't matter if Amazon changes their mind after the fact, the deal's done.
Amazon's pissed they lost a lot of money, but they're not allowed to retroactively charge people extra. I think their only option is to treat it as a sunk cost and make sure it doesn't happen again.
Maybe not
Well when you click on a product on a website you are not agreeing to buy. The only point in which you agree to buy is AFTER you have entered your CC number and you see a final total and you hit the submit/I agree/whatever button.
Amazon is the one big corporation I have found that cares about its customers. Many times they have swallowed return shipping for heavy items way after their 30 day limit (just by asking them politely), and they routinely adjust your charge if they lower their prices (send email) etc.
So, let's get back to the issue. People saw on various threads on the net "Amazon Price Mistake!" logged on to Amazon and started ordering away, hoping their orders will get through. Probably the ebayers were the fist to take advantage of this. Now it was obvious to them that it was an error in the final cost calculation, as the promo rules were clear. There were even threads about the ethics of this on the various fora such as DVD Talk.
Amazon does send many of these orders (my guess is many thousands) and when they realize it they apologise and they ask to pay return shipping to get them back or to charge the right amount. Then people start acusing Amazon.
Wow. Just wow. I think because the general rule is to hate big corporations, we applaud people who try to steal from them? Yes, I would consider it stealing if you try to take advantage of a price mistake (especially if you do it to make money off ebay) AND you complain when the merchant wants to correct it. Yes, if the big corporation does not loose a lot of money, they will not bother you about it (consider it something like advertisment costs) and you would be fine with your conscience. But the fact that Amazon (with the amazing IMHO CS record) asks this, it meens that way too many people took advantage of this (I would bet most not for personal use) that they have to cut back their losses.
Now, IANAL, but I have read many times on slashdot about cases such as the one with the animal (I forgot, was it cow or horse or sth?) that was cheap for meat but was not sterile after all so the court annuled the low price contract. In the animal case the buyer did not even know more than the seller - it was just luck - while with the Amazon situation the buyers were aware of the mistake on the seller part, something which makes the case simpler to me.
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I'm sorry, that's total BS.
If I charge my client a price for an item or service, and they stand up to their end of our bargin, I must stand up for my end... period.
If I accidentally give them a quote with no shipping costs on it, for example... well, I eat shipping on that order.
If I quote them a price on a special order item, then go to order it and realize the price I had was old, well, that's my fault too, not my customers. We made a deal, and they lived up to their end of it.
Going back after the fact to revise the terms of your deal is not only fraudulent, but opens the door to huge amount of intentional fraud. A contract would have no legitamacy at all... "whups, sorry, I messed up, let's rewrite the deal".
I'm sorry, if you cannot be bothered to keep your own systems in order, you pay the price of failure. Amazon has no right and should have no expectation whatsoever that a single one of those customers would or should return what they purchased, fairly, for a price Amazon told them was good. Period.