UK law on pricing errors
Under UK law, a price displayed on a website or in-store is generally considered an "invitation to treat" - not a binding offer. This principle, established in case law (Pharmaceutical Society of Great Britain v Boots Cash Chemists), means retailers are not legally obligated to sell items at incorrectly displayed prices.
The Consumer Rights Act 2015 protects consumers in many ways, but it does not require retailers to honor pricing errors. The contract is typically not formed until the retailer confirms your order (usually via dispatch confirmation).
Consumer Protection from Unfair Trading Regulations 2008
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibit misleading pricing practices. However, these regulations target intentional deception, not genuine mistakes.
If a retailer deliberately displays a low price to attract customers and then refuses to honor it (bait and switch), that would violate CPRs. But a genuine pricing error - where the retailer corrects it promptly - is not considered unfair trading.
The Advertising Standards Authority (ASA) also monitors pricing claims but focuses on misleading advertisements rather than accidental website errors.
When do UK retailers honor pricing errors?
In practice, many UK retailers honor pricing errors in these situations:
After dispatch - Once an item has been dispatched, the contract is formed and the retailer must fulfill it at the agreed price.
Click & Collect confirmations - Some retailers consider a collection confirmation as contract formation.
Customer loyalty - Retailers like John Lewis, known for customer service, often honor errors to maintain their reputation.
Small errors - Minor pricing discrepancies are often absorbed rather than corrected.
Argos, Currys, Amazon UK, and John Lewis all have different approaches, but the trend is toward honoring errors when orders are confirmed.
Your rights when an order is cancelled
If a UK retailer cancels your order due to a pricing error:
1. Full refund - You are entitled to a complete refund of any payment made.
2. No penalty - There is no cost or penalty to you for having placed the order.
3. Complaint options - If you believe the pricing was deliberately misleading, you can complain to Trading Standards or the ASA.
4. Chargeback - If the refund isn't processed promptly, you can request a chargeback from your bank.
While frustrating, a cancelled pricing error order costs you nothing and there's always another deal around the corner.
FAQ
Legal FAQ
Are pricing errors legally binding in the UK?
Generally no. Under UK law, a displayed price is an invitation to treat. A binding contract is typically formed when the retailer dispatches the item, not when you place the order.
Does the Consumer Rights Act 2015 cover pricing errors?
The Consumer Rights Act 2015 provides broad consumer protection but does not specifically require retailers to honor pricing errors. It does ensure you receive a full refund if your order is cancelled.
Can I report a retailer for not honoring a pricing error?
If you believe the pricing was deliberately misleading (bait and switch), you can report it to Trading Standards. Genuine pricing errors that are corrected promptly are not typically actionable.
What happens after a UK retailer dispatches a mispriced item?
Once dispatched, the contract is generally considered formed. The retailer must fulfill the order at the agreed price. This is why dispatch confirmation is the key moment for pricing error orders.
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