Price errors in online shops: When retailers have to deliver, which legal rules apply – and how anomaly detection prevents costly mistakes.
A British retailer discovered just how quickly a price error can occur in February this year.
In the British mail order business, Matalan mistakenly reduced the price of a double pram from around £400 to £40. The news spread quickly on social media.
As a result, numerous orders were placed within a very short time.
The retailer reacted immediately, cancelling many orders according to its own statements and referring to its terms and conditions, which exclude pricing errors.
Many customers were angry. Even the British newspaper The Sun reported on the story. And the case raised a key question for online retailers: does the shop have to deliver in the event of such a pricing error – or can it simply rescind the contract?
Is it even legally possible to protect yourself against pricing errors in your terms and conditions?
Key legal questions regarding pricing errors in online shops
According to EU directives, there is generally no automatic obligation to deliver in the event of a pricing error – provided that the error was clearly recognisable as such.
Under Austrian law, a so-called motive error – e.g. an incorrect price calculation – can be contested. The contract does not then have to be fulfilled.
In Germany, specialist solicitors point out that, according to Section 119 of the German Civil Code (BGB), a contract can be contested on the grounds of error if, for example, an incorrect price was stated (source: Internetrecht Rostock, specialist solicitors Johannes Richard & Andreas Kempcke).
Important for retailers: It depends on the recognisability of the error, the time of performance and the clarity of communication.
The role of processes: Process excellence after the alarm
When a pricing error is detected in the shop, every minute counts. A prompt and correct cancellation email before the goods are dispatched is ‘worth its weight in gold’.
If the order is already being processed or has even been shipped, the likelihood that the retailer will be obliged to deliver increases – subsequent processing becomes more complex and expensive.
An efficient process flow includes:
- an automated alert system for unusual prices
- a manual check by a pricing manager or a control authority
- the immediate dispatch of a clear cancellation notice to the customer
- documentation of the error and proof of the steps taken
Retailers who are weak in this area risk not only damage from incorrect purchases, but also loss of reputation and costly reversals.
Conclusion: How to quickly identify pricing errors in your online shop
Pricing errors in online shops are more than just a technical nuisance – they can lead to a real loss of reputation.
To avoid this, retailers should rely on anomaly detection: it identifies unusual deviations in order intake before orders are transferred to fulfilment.
This gives retailers valuable time to react in a timely and legally compliant manner – for example, by sending a correct cancellation email before a delivery claim arises.
After all, pricing errors can never be completely avoided. But those who intelligently monitor their processes and data flows can turn a potential liability risk into a controllable process.
#ecommerce #earlywarning system #legalissues #customerrelations #technology
