Wednesday, January 3, 2007

Office Max Fails to Honor Price Mistake

On New Years Eve I was reading Digg.com and came across this post Officemax- 4GB Flash Drive for $17.98

So I was thinking, wow, that is a great price. I placed an order for 2. I then started seeing comments saying it was a a pricing mistake. The product number was correct but the price was wrong. Well I figured since it was their mistake they would have to honor it. I mean in my experience, every time this has happened in a brick and mortar store I was given the advertised price no matter how big the screw up was.

Being curious I called customer service today to find out the status. I said nothing about a price mistake. I only asked the status. I was told that they were canceling the order as it was a mistake. I looked up the FTC for "Truth in Advertising" and found this.

http://www.ftc.gov/bcp/conline/pubs/buspubs/ad-faqs.htm

Internet Advertising


Is advertising on the Internet subject to the same laws as other advertising?
Yes. Ad claims on the Internet must be truthful and substantiated. Ask the FTC for a copy of Advertising and Marketing on the Internet: The Rules of the Road for more information. Dot Com Disclosures offers special guidance for online advertisers regarding how to make sure that any disclaimers and disclosures in online ads are clear and conspicuous. It addresses 'Net specific issues such as banner ads, pop-up windows, scrolling, hyperlinks, etc. Internet marketers also should be aware that the FTC's Mail or Telephone Order Merchandise Rule ("Mail Order Rule") applies to online transactions. For specific guidance on complying with the Mail Order Rule online, ask the FTC for a copy of Selling on the Internet: Prompt Delivery Rules, as well as A Business Guide to the Federal Trade Commission's Mail or Telephone Order Merchandise Rule.

Pricing


Are there any standards governing the advertising of prices?
The same standards for truthfulness apply when companies make claims about price comparisons, "sale" prices, and the like. For more information, ask the FTC for the Guides Against Deceptive Pricing. Since many pricing issues involve local practices, you also may want to contact the Attorney General's office in the state(s) where you plan to advertise.
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?

Oh I am sure in this day and age Office Max can change the rules as they go. But ethically it is their responsibility to make sure their prices are correct, Internet or Brick and Mortar standing.