Understanding Pricing Errors in Advertisements
When a product or service is advertised at the wrong price, it usually means there has been a mistake – such as a typo, a technical error, or a misprint – resulting in the price shown being lower or higher than intended. These pricing errors can occur anywhere: on shop shelves, in catalogues, in online listings, or even in promotional emails and leaflets.
Why do pricing errors happen?
Mistakes in pricing are surprisingly common. They can be caused by human error when entering prices into a system, glitches in online store software, or confusion during sales events and promotions. For example, a missing zero could turn a £100 item into a £10 bargain, or an outdated offer might accidentally be left on display.
Are businesses required to honour the advertised price?
Many people believe that if an item is advertised at a certain price, the retailer must sell it to you for that amount. However, under UK law, this is not always the case. An advertised price is considered an "invitation to treat" rather than a legal offer. This means the retailer is inviting you to make an offer to buy at that price, but they are not legally obliged to accept it if the price was a genuine mistake.
The Consumer Protection from Unfair Trading Regulations 2008 requires businesses to be honest and not mislead consumers, but it also recognises that genuine errors can happen. If a pricing mistake is spotted before you pay, the business can usually refuse to sell at the incorrect price. If you have already paid and the business later realises the error, your rights may be different – find out more about what happens if you bought a mispriced item.
How common are pricing errors?
With the rise of online shopping and automated pricing systems, pricing errors are more visible than ever. While most retailers have safeguards in place to catch mistakes, no system is perfect. If you spot an unusually low or high price, it is worth double-checking before making a purchase.
What should you do if you see a pricing error?
If you notice a product advertised at a suspiciously low (or high) price, you can ask staff to confirm the correct price or check the retailer’s pricing policy, which is often displayed in-store or online. Remember, until a sale is completed, the retailer is not usually bound to sell at the advertised price if it was a genuine mistake.
Understanding how pricing errors work helps set realistic expectations and can guide you on the next steps if you think you’ve been affected by a mispriced item. For further details on your specific rights after purchase, see our page on what to do if you bought a mispriced item.
Your Rights When You See a Wrong Price
When you spot a product or service advertised at the wrong price – whether online, in a shop, or in a catalogue – it’s natural to wonder if you have the right to buy it at that price. UK law offers some protections for consumers, but the situation isn’t always as straightforward as it might seem.
Are Shops Legally Required to Honour the Advertised Price?
In most cases, businesses are not legally obliged to sell you an item at the incorrect price if it was a genuine mistake. An advertised price is usually considered an “invitation to treat” – an invitation for you to make an offer to buy. The shop can then choose whether to accept or reject your offer. If a pricing error is obvious or the price is clearly too low to be genuine, the retailer can refuse to sell at that price.
For example, if a TV worth £500 is accidentally labelled as £50, the shop is within its rights to correct the mistake and decline your purchase at the lower price.
When Might You Be Entitled to Buy at the Advertised Price?
There are some situations where you could be entitled to the advertised price:
If the seller has already accepted your order: Once a retailer has accepted your order and taken payment, a contract is usually formed. Cancelling your order after this point may give you the right to a refund, and in some cases, you may be able to claim compensation if you’ve suffered a loss as a result.
If misleading pricing is used: If a business consistently advertises incorrect prices to attract customers, this could be considered misleading or unfair trading, which is against the law.
For more detailed examples of what happens if you bought a mispriced item, see our dedicated guidance.
What Laws Protect You?
Your rights are mainly protected by the Consumer Rights Act 2015, which sets out the rules for contracts between consumers and traders, including what happens when goods or services are not as described or are sold under misleading circumstances. The Act requires traders to provide accurate information and prohibits unfair trading practices.
If you’ve paid for an item and the retailer cancels the order due to a pricing mistake, you are entitled to a prompt refund. You can learn more about your refund rights in the UK, including what to do if things go wrong.
Practical Advice
Check the terms and conditions on the retailer’s website or in-store, as these often explain how pricing errors are handled.
Act quickly if you believe you have a valid claim – keep records of advertisements, receipts, and correspondence.
Report misleading pricing to Trading Standards if you think a business is regularly advertising incorrect prices to lure customers.
Remember, while seeing a bargain can be exciting, the law recognises that genuine mistakes happen. Knowing your rights can help you respond confidently if you encounter a pricing error.
What Businesses Must Do When They Discover a Pricing Mistake
When a business realises it has advertised a product or service at the wrong price, it must act quickly and responsibly to correct the mistake. UK consumer law sets out certain obligations and best practices for businesses in these situations. Here’s what you need to know:
Do Businesses Have to Honour the Incorrect Price?
In most cases, businesses are not legally required to sell an item at the wrongly advertised price. Under UK law, an advertisement or displayed price is considered an “invitation to treat” rather than a binding offer. This means that when you see an item advertised at a particular price, the business is inviting you to make an offer to buy it at that price. The sale is only legally binding once the business accepts your offer – usually when they confirm your order and take payment.
For example, if you see a television advertised online for £50 instead of £500 due to a typing error, the retailer can usually cancel the order after discovering the mistake, as long as they have not already accepted your payment and confirmed the sale.
What Should Businesses Do When They Spot a Pricing Error?
Businesses are expected to correct pricing errors as soon as they become aware of them. This means updating price tags in shops, correcting online listings, and stopping any misleading advertising. If you have already placed an order at the incorrect price, the business should contact you promptly to explain the mistake and what will happen next.
If payment has already been taken, the business should refund you in full if they decide not to honour the sale. Good customer service also means apologising for the inconvenience and being transparent about what caused the error.
Are There Any Legal or Regulatory Requirements?
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) require businesses not to mislead consumers with incorrect information, including prices. If a business deliberately advertises false prices to attract customers, this is considered a misleading action and is illegal.
However, genuine mistakes – such as a misplaced decimal point – are treated differently. The law recognises that errors can happen, but businesses must not repeatedly or carelessly make pricing mistakes. Repeated errors could be seen as misleading under the CPRs, even if not intentional.
Additionally, if you have already received confirmation of your order and the business has accepted payment, the terms and conditions of sale will determine whether the business can cancel the contract. Many businesses include a clause in their terms allowing them to cancel orders in the case of obvious pricing errors.
Should Businesses Notify Customers?
Yes, businesses should inform customers as soon as possible if an order cannot be fulfilled due to a pricing mistake. Prompt communication helps avoid confusion and disappointment, and it ensures that customers are not left out of pocket.
Practical Advice for Consumers
If you find yourself in this situation, check the business’s terms and conditions for details about pricing errors and cancellations. If you have already paid, you should expect a full refund if the order is cancelled. If you feel you have been misled or treated unfairly, you may wish to raise a complaint with the business or seek further advice.
In summary, while businesses are not usually required to honour an obvious pricing error, they must act honestly, communicate clearly, and comply with consumer protection laws when such mistakes occur.
If You Have Already Bought an Item at the Wrong Price
If you have already bought an item at the wrong price, your rights depend on whether the purchase was completed and the circumstances around the sale. Here’s what you need to know about keeping the item, getting a refund, or claiming compensation.
Can You Keep the Item at the Wrong Price?
If you have already paid for a product or service and the retailer has accepted your order, in most cases, the contract is legally binding. This means the business should honour the price you paid, even if it was a mistake. However, there are exceptions, especially if the error was obvious (for example, a £500 television listed for £5). If it’s clear that the price was a genuine mistake that any reasonable person would spot, the business may be able to cancel the sale.
What Happens if the Business Cancels the Sale?
If the retailer realises the pricing error before dispatching your item or providing the service, they may contact you to cancel the order and refund your payment. This is more common with online or distance sales, where a contract is usually formed when the business confirms your order or dispatches the goods. Under the Consumer Contracts Regulations 2013, you are entitled to a full refund if the sale is cancelled.
If you need help with the cancellation process, there is guidance on how to cancel or return goods bought online or by phone, which includes a template letter you can use.
Can You Claim Compensation If You Paid More Than the Advertised Price?
If you have been charged more than the price advertised, you should raise the issue with the business. In many cases, they will refund the difference. If the business refuses, you may be able to claim compensation, especially if you can show you relied on the advertised price when making your decision. Keep records of any communications and receipts, as these will help support your claim.
For more information about your options and how to proceed, see our guide to refunds and compensation on purchases.
What If the Business Won’t Resolve the Issue?
If the business refuses to honour the price, provide a refund, or address your complaint fairly, you can escalate the matter. Start by making a formal complaint to the business in writing. If this does not resolve the issue, you may consider contacting a consumer advice service or, in some cases, seeking help from an ombudsman or taking legal action.
Your rights are protected under the Consumer Contracts Regulations 2013, which set out what businesses must do when selling goods or services to consumers, including your rights to refunds and cancellations.
Understanding your rights when you’ve bought something at the wrong price can help you resolve issues quickly and confidently. For more details on your consumer protections, explore our guides on refunds and compensation on purchases and how to cancel or return goods bought online or by phone.
Special Cases: Events, Tickets, and Services
When it comes to pricing errors, special rules can apply to event tickets and services, which are often treated differently from physical goods. Understanding your rights in these situations can help you know what to expect and how to respond if you spot a mistake.
Event Tickets: What Happens if the Price Is Wrong?
If you see an event ticket advertised at the wrong price, your rights depend on whether you have already bought the ticket or are still considering the purchase. If you try to buy a ticket online or in person and the seller realises the price is incorrect before completing the sale, they can usually refuse to sell it at the advertised price. This is because, in most cases, an advert is considered an "invitation to treat" rather than a binding offer.
However, if you have already paid for the ticket and received confirmation, the situation is more complicated. The business may still try to cancel your ticket if the pricing error was obvious (for example, a £100 ticket listed for £1). In these cases, they must refund you in full. If you have incurred extra costs, such as travel or accommodation booked in reliance on the ticket, it may be difficult to claim these back unless you can show the business acted unfairly or negligently.
For more details about your rights in these situations, see our guide on events and tickets.
Pricing Errors with Services
Mistakes can also happen with services, such as cleaning, repairs, or professional work. The rules for services differ from those for goods. If a service is advertised at the wrong price but you have not yet entered into a contract, the provider is not obliged to honour the incorrect price. Once a contract is formed – either by signing an agreement or by starting the service – the terms, including price, are usually binding.
If you are charged more than the advertised price after the service is provided, you may have grounds to challenge the bill, especially if you relied on the advertised price when agreeing to the service. The Consumer Rights Act 2015 states that services must be provided with reasonable care and skill, and the price should be fair and transparent. If you believe you have been charged incorrectly, you can learn more about your options under problems with a service.
Incorrect Charges on Phone, Internet, or TV Bills
Pricing errors are not limited to one-off purchases – mistakes can also appear on regular bills for phone, internet, or TV services. These might include being charged at a higher rate than agreed, or unexpected fees due to a pricing mistake. If you notice an incorrect charge, contact your provider as soon as possible to dispute it. Keep records of your bills and any communication.
If the provider does not resolve the issue, you have the right to escalate the complaint. For step-by-step advice on how to challenge these types of billing errors, visit our page on disputing a phone, internet, or TV bill.
Understanding how pricing errors are handled in special cases like events, tickets, and services can help you protect your rights and resolve issues quickly. If you have further questions about your consumer rights, exploring related topics can provide more detailed guidance tailored to your situation.
How to Resolve Disputes Over Pricing Errors
How to Resolve Disputes Over Pricing Errors
If you believe a business has handled a pricing error unfairly – such as refusing to honour an advertised price or not providing a clear explanation – you have several steps you can take to resolve the issue. Here’s a practical guide to help you navigate the process:
1. Communicate Directly with the Seller
Start by contacting the seller or service provider as soon as possible. Clearly explain your concern, referencing the advertised price and any evidence you have (such as a screenshot or a copy of the advert). Ask for a written explanation of why the price was not honoured, and request a fair resolution – this could include honouring the price, offering a partial refund, or providing alternative compensation.
Be polite but firm in your communication. Keep records of all correspondence, including emails and notes from phone calls, in case you need to escalate your complaint.
2. Check Your Legal Rights
In the UK, retailers are generally not legally required to sell goods at the advertised price if it was a genuine mistake and no contract has been formed (for example, if you haven’t paid yet or received a confirmation). However, if you have already paid and received a confirmation, the business may be obliged to honour the price, depending on the circumstances and their terms and conditions.
Businesses are also bound by consumer protection laws such as the Consumer Protection from Unfair Trading Regulations 2008, which require them to act fairly and not mislead customers through false or deceptive pricing.
3. Escalate Your Complaint
If you are unable to resolve the dispute directly with the business, you can escalate your complaint:
Contact Trading Standards: Trading Standards officers investigate complaints about unfair trading practices, including misleading pricing. They can advise you on your rights and may take action against businesses that repeatedly break the rules. For more information, visit Trading Standards.
Seek Help from Consumer Advice Services: Organisations like Citizens Advice can offer guidance on your next steps and help you understand your rights.
4. Use Ombudsman Services
If your complaint remains unresolved after following the business’s complaints process, you may be able to refer the matter to an independent ombudsman. Ombudsmen are impartial organisations that can investigate disputes between consumers and businesses and recommend solutions.
To understand how the process works and whether your case qualifies, see Ombudsman Services](https://www.citizensadvice.org.uk/consumer/get-more-help/how-to-use-an-ombudsman-in-england/). If you’re ready to take this step, you can also [contact an ombudsman in England for further assistance.
5. Additional Tips
Act Quickly: There may be time limits for making complaints or escalating to an ombudsman.
Gather Evidence: Keep all relevant documents, receipts, adverts, and correspondence.
Stay Informed: Understanding your consumer rights can make it easier to resolve disputes and avoid similar issues in the future.
By following these steps and making use of available resources, you can increase your chances of resolving disputes over pricing errors fairly and efficiently.
Related Topics to Explore
Understanding your rights when something is advertised at the wrong price is just one part of being a well-informed consumer. To help you get a fuller picture of your legal protections and what steps to take in different situations, here are some related topics you may find useful:
Problems with purchased goods: If you’ve bought something that turns out to be faulty, not as described, or doesn’t work as expected, you have specific rights under the Consumer Rights Act 2015. This topic explains what you can do if you run into issues after making a purchase, including how to request a repair, replacement, or refund.
Refunds and compensation on purchases: Sometimes, you may be entitled to more than just a refund. If you’ve suffered inconvenience or extra costs because of a pricing error or another problem with a purchase, you might be able to claim compensation. This guide covers when refunds and compensation apply, how to request them, and what evidence you may need.
Refund rights in the UK: Knowing your refund rights is essential, whether you’re shopping in-store or online. This topic provides a comprehensive overview of when you can get your money back, the time limits for making a claim, and any exceptions that might apply.
Exploring these topics will give you a stronger understanding of your consumer rights and the steps you can take if things go wrong with a purchase. Whether you’re dealing with a pricing mistake, a faulty product, or seeking compensation, knowing where you stand can help you resolve issues more quickly and confidently.
