Sears mistakenly posted iPads 2 for $69. Not honoring purchases that were processed at that price

[Liberal_in_LA]

Sears Mistakenly Sells iPads 2 For $69.00 On Its Website

The on-line retailer briefly posted the price of a 16GB iPad 2 for $69 Friday afternoon and the larger 32GB model for $179. The Apple made handheld devices normally sell for between $500 and $800 depending on the model.

Customers who spotted the deal began purchasing multiple iPads and spreading word of the amazing price on social networking sites like Twitter and Facebook until someone from the company realized the mistake. Customers say within about 20 minutes, the item was taken off the Sears' webpage.

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Meanwhile customers who thought they'd scored a great deal on a brand new iPad 2 say they're disappointed the company won't honor the posted price, even after they paid and got a confirmation number.


"I don't see how they can do that," said a very disgruntled Paula Knight. She says she was trying to purchase one of the iPads for her autistic son who had his stolen at school. "It's very disappointing for us all."


http://www.digtriad.com/news/national/article/183201/175/Oops-Sears-Accidently-Sells-iPads-2-For-6900-Online?odyssey=obinsite

[mysuzuki2]

1. That's Sears for you.

Honestly, why are they still in business?

[MineralMan]

3. What? I suppose you've never made a mistake?

Someone screwed up and put the wrong price in the ad. As soon as it was recognized, it was corrected. Since the mistake was of such a magnitude that anyone who looked at it could see it was a mistake, why would anyone feel like Sears had to honor that erroneous price?

A little common sense goes a long way, I think.

[proud2BlibKansan]

8. Because it's a law.

I used to work in retail advertising. Law says you have to honor the price you list in an ad. Sears could put out a new ad with the correct price but they most certainly do have to honor the price in their ad until they correct it.

[Liberal_in_LA]

10. I remember a time when prices posted in error were honored

Wrong prices were definitely honored if the item was purchased. Wonder what Sears would have done if the ipads has been shipped at that price? charge the purchaser the difference?

[Hamlette]

14. That was before the internet

where tens of thousands of people can buy the item in the 20 minutes it takes to correct the dollar amount.

[slackmaster]

16. For any Ipads that had already shipped, Sears would be SOL

They would have no legal recourse.

[former9thward]

28. All legal cases concerning this type of thing have favored the retailer.

And they all were long before the internet. Some retailers honored a mistake for pr purposes. But legally they did not have to.

[slackmaster]

11. "In the event of a pricing error on the Sears Site, Sears reserves the right to cancel any orders...

...resulting from such pricing errors."

Source: Terms of Use of the sears.com Web site.

http://www.sears.com/shc/s/nb_10153_12605_NB_CStermsofservice?i_cntr=1310934767715

By law they can't make the sale and charge your credit card or bank account more than the advertised price, but they can decline to make a sale at all.

[MineralMan]

35. Bingo.

[DefenseLawyer]

49. That doesn't necessarily save them

It may in this case, but simply putting up a sign that says "Not responsible if we screw up" does not in and of itself relieve anyone of responsibility. Those kinds of signs or declarations in the fine print are there to discourage lawsuits and to help show that someone may have been on notice of a potential danger, but the sign isn't binding. Otherwise, wouldn't everyone just put up signs everywhere that say "Nothing I do will subject me to litigation"?

[slackmaster]

50. Anybody can sue anybody for anything at any time

That doesn't mean a merchant is legally obligated to honor an offer that contains a material but honest error.

[derby378]

34. Yep - I smell a big fat lawsuit

And when it's over, Sears will probably wish they just handed over the iPads.

[tammywammy]

40. See post 11. Everyone that purchases off their website agrees to their terms. n/t

[AlabamaLibrul]

36. I'm sure there's a "not responsible for typographical errors" clause somewhere in there n/t

[Codeine]

42. I'm sure that varies by state.

I've never heard of a business being forced to honor an ad if it was clearly a mistake and not deceptive advertising.

[proud2BlibKansan]

45. Federal Trade Commission regs

Key word: Federal

http://business.ftc.gov/documents/bus35-advertising-faqs-guide-small-business

[slackmaster]

47. Here we have a classic online "Hail Mary" attempt by proud2BlibKansan to avoid admitting a mistake

The claim in reply #3, i.e. "Law says you have to honor the price you list in an ad" is not supported by the page (or the site) linked to in reply #45.

Deceptive pricing is of course prohibited, but there is no federal law (or regulation) that requires a seller, online or otherwise, to honor an incorrect price that was posted in error.

[Codeine]

61. That document actually backs up my point.

"What responsibility does a company have to make sure that prices are accurate?

In many jurisdictions, companies are legally required to charge no more than the advertised or shelf price for a product, so good pricing practices are important for both customer satisfaction and a company’s bottom line. For tips on accurate pricing practices in advertising and in retail stores, ask the FTC for Good Pricing Practices? SCAN DO."

Varies by state, just as I assumed.

[AngryAmish]

52. cite please

[AngryAmish]

53. Same law that allows you to get free beer if you find a mouse in the bottle?

[Xithras]

57. Sears wasn't actually selling the iPads.

Sears, like Amazon and a number of other online retailers, allows third party companies to sell via their website. The iPad2 was being sold by a third party retailer, and it was that retailer who posted the incorrect price.

Sears is a bit stupid for allowing other people to use their name to generate sales, but the debt is actually owed by the third party retailer.

[valerief]

2. No recourse in America. nt

[MineralMan]

4. Greed sucks, whether it comes from a corporation or

consumers. Everyone who ordered knew that price was incorrect. Now they're pissed because now they won't be able to sell the six ipads they ordered on Craigs List or eBay? Greed.

Business needs to be based on honesty and common sense. Just because a company makes an error in an ad doesn't mean you get to rip them off. Feh!

[richmwill]

6. +1

True. I'm sure they're just disappointed that they weren't able to complete their near-theft from Sears. Were they going to sell their multiple iPads on Ebay or Craigslist for anywhere near the $69 they thought they were purchasing them for, or the full retail amount? We all know the answer to that. And that's why they're pissed. They received an excellent lesson in the evils of greed.

[DCKit]

17. OMG, I could tell you some stories about greed.

Recent, fresh stories.

[LiberalFighter]

30. I agree

Just as a consumer should try to correct a mistake due to receiving too much change. No different when a business overcharges. Both need to be honest.

[lame54]

37. I agree with you but...

since I know they never play fair - it's good to see a mega corp get stung

[Journeyman]

5. It's one thing to claim "printer's error" and not honor a mislabeled price. . .

it happens all the time.

But it's quite another to actually sell something at the price quoted, take the money and confirm the pending delivery, and then renege on the deal.

Sear's should have chalked it up as a lesson in the need to preafrood better, honored the mistaken sales, and moved forward. As it is, the negative publicity from this may cause more harm than the loss of a few hundred dollars.

[CurtEastPoint]

7. sorry... couldn't resist... "preafrood "

or did you do that on purpose. Either way it is funny!

[Journeyman]

12. It's been my favored way to refer to it since I entered the graphics field. . .

both funny and when I send it to clients seems to spur them to take a closer look at the project.

[CurtEastPoint]

25. :-) Worked for me! nt

[Iggo]

39. I totally missed that.

Skimmed right past it.

Er, durr.

[Ikonoklast]

9. Retailers have always reserved the right to not honor advertising errors.

As long as it was an honest mistake, and not some bait-and-switch scheme, nothing illegal about what they did.

I would have honored those that already thought they had a purchase, though.

Just a little good marketing move.


Grocery stores and other retailers run into this all the time when circulars, printed weeks in advance, come out with price errors on them.

That is why there is a disclaimer printed on many ads of this type; I wonder if Sears had an on-line disclaimer against mistakes.

[slackmaster]

18. For online retailers, it's always in the Terms of Use for the Web site

Which customers agree to abide by when they make purchases.

[frylock]

13. these people need to get real..

i recently had the same experience. an online retailer advertised a $1200 set of taylor made golf clubs for $150 or something. i jumped all over it knowing full well that it was likely a mistake, and that my purchase would be refunded if that were indeed the case. i figured i had nothing to lose.

[SoutherDem]

15. Where did the $69 come from..

... does anyone have a clue as to the store mark-up for iPad 2. I wouldn't think it would be too much., but I just wondered if $69 was the wholesale price? I heard several years ago that the ipod cost like $5 dollars to make, the rest was profit for Apple and the retailer. Please don't misunderstand me. I am an Apple person, iMac, iMac Pro, iPad, iPhone, iPod, Apple TV, and Time Capsule. I was just wondering.

[DCKit]

19. All other theories aside, admit it, you have a filthy mind. nt

[TheWraith]

23. No, that's grossly unrealistic.

An iPod does not cost $5, and an iPad does not cost $69. It's been estimated that the "parts price," i.e. cost for the components not including labor, on an iPad are estimated to be about $300 for the basic model iPad which sell for $500. Then add in development, assembling, testing, shipping, and retail.

More than likely, the intended list price was $699, and they dropped a number.

[Tesha]

32. You heard wrong. The iPod costs Apple a lot more than $5.

The biggest cost for any iPod/iPhone/iPad is the
Flash Memory; just check the prices of that on the
open market and you'll have an idea of what the
parts for an iDevice cost (Flash is usually about
50% of the parts cost).

Tesha

[AlabamaLibrul]

38. The 32GB cost of materials is $327 and more than 1/3 of that is the screen.

See the breakdown here:
http://evertiq.com/news/19128

Also, let me tell you that there is very, very little money in Apple products for retailers. It all comes from anything they can sell with it.

[aikoaiko]

20. The first rule of mismarked online sales clubs is don't talke about mismarked online sales club.

The second rule to pony up for same day or overnight delivery.

[cbdo2007]

51. True this.

I regularly check an online "deals" type of website where stuff like this gets posted. Usually, even when they do honor price mistakes it will only be for the first 100-500 people or something, so it's best to just get in quick and get one and cross your fingers, but don't tell anyone else. The sooner more people jump on it they more flags it will raise.

[Lucian]

21. Uh, yeah, I had one "stolen" at school too.

So I should get one for $69.

:eyes: :eyes: :eyes:

[Tejas]

22. Sears' fault.

;)

[Lucian]

24. It annoys me when stories like this...

always have a parent with some unfortunate kid. It's like just because their kid is disadvantaged they think they should get something cheaper.

I can make up a kid too in order to get cheap shit.

[RayOfHope]

26. I'll give her the benefit of the doubt about her some, because many special ed programs

use iPads for assistive communication and other needs (visual schedules, etc). She mentioned her son was austistic. Tons of apps out there for this.

But a $69 iPad? Come on.

[Lucian]

27. Uh, yeah, I have an autistic son too.

See how easy it is to make something up?

[RayOfHope]

29. Absolutely it is. But I'll bet there are lots of people out there who are unaware that

ipads are hugely useful tools for special needs kids.

I actually do have an autistic son (not making that up!)

[spanone]

31. it's called a mistake. shit happens.

[Commie Pinko Dirtbag]

33. Had that happened in Brazil, Sears would be SOL by law.

Amazingly, I don't see that happening so often here.

[slackmaster]

43. Sears would point out the TOU as mentioned in reply #11 above, and tell the Brazilian to pound sand

There would be nothing a Brazilian customer could do about it.

[Commie Pinko Dirtbag]

44. No, I mean a Brazilian buying at a BRAZILIAN branch of Sears.

Brazilian law applies. It is the same whether it's posted on a website or on a paper sticker.

[slackmaster]

46. I am unable to confirm the existence of a Brazilian branch of Sears, or Brazilian law that requires

...a merchant to honor an incorrect price that was published due to an innocent error. I've looked through the terms of use of several online merchants who are located in Brazil, and they all have clauses stating that they have the right to decline a sale in the event that an erroneous price was listed.

Do you have a source to back up your claim, CPD? I think it would be very unusual for a country's law to force a seller to honor an offer that has a material typographical error. What if the incorrect price was the result of a malicious act by a disgruntled Web master?

I'd think twice about having a doing business in such a country.

[Commie Pinko Dirtbag]

58. Portuguese link.

According to it, jurispridence here is quite subjective. It offers as two examples an online store mistakenly labeling a $1200 TV for $120 or for $12. In the first case the court would rule against the merchant; in the second case, for.

http://jus.uol.com.br/revista/texto/12221/peculiaridades-juridicas-do-comercio-eletronico

Oh, and by the way, lots of big foreign stores are happy to do business here, and the retail market is quite brisk, thank you. (Carrefour, FNAC, Wal-Mart, Blockbuster, Amazon, Apple, GAP, Nike...) Not to mention that all the local big chains have significant percentages of foreign investors. Sears itself left when it was going through bad times, and before the Brazilian resurgence. But the argument applies quite well to a host of other businesses.

[Logical]

41. Nor should they have to honor them. Mistakes happen. n-t

[cbdo2007]

48. What if it were reversed??

And they accidentally rang up for $50 too much but people didn't notice?!?! hahaha, either way the store can never win here at DU.

I love the added sob story too "She says she was trying to purchase one of the iPads for her autistic son who had his stolen at school." Oh come on, nobody needs to take an Ipad2 to school, and how much money do these people have where they can just buy a bunch of them, yet they're complaing that they can't take advantage of a computer glitch?

[dipsydoodle]

54. It might be disappointing for some

but I'm sure your Contract Law in the US is more or less the same as ours in the UK.

http://en.wikipedia.org/wiki/Invitation_to_treat

[ProudToBeBlueInRhody]

55. "She says she was trying to purchase one of the iPads for her autistic son who had his stolen"

Jesus H Christ, Sears should honor the price but what a shock that someone had to pull this card AGAIN.

[TwilightGardener]

56. I wouldn't expect them to honor those purchases unless delivery was underway.

I don't have a problem with this. Mistakes happen.

[fujiyama]

59. I hate to side with Sears

but they have no obligation to ship those iPads out at that price. They can cancel the orders and if the customer wants to, they can reorder them for the correct price. At the same time, Sears can't charge the difference unless they're reprocessing the order per the customer's authorization. I think any legitimate retail establishment would do it this way.

Unless the product was already delivered, Sears has no obligation to honor the price. Once the product has left the establishment, they're SOL. Had these iPads actually shipped and they wanted the difference, Sears would have been screwed.

This kind of crap happens all the time during Black Friday - not necessarily mislabeled prices, but I've seen orders that have been processed and then customers receiving emails telling them they're sorry but the orders couldn't go through, likely due to incorrect inventories or whatever else.

Yes, it's annoying. And I personally find it bait and switch, but it's not the end of the world and as far as I know I don't think it's illegal. Especially in this case, it's just a matter of making a mistake.

[Thegonagle]

60. I don't feel the least bit bad for the wanna be buyers who's orders were cancelled. I feel much wors...

for the employee who made the mistake and has to answer his/her boss for initiating this fiasco.