Walmart is known for being the place to find a great bargain, but customers were surprised at just how big of a bargain they were able to score on the company’s website. Apparently a glitch caused the site to deeply discount some items like treadmills for $33, and computer monitors for less than $10. Although people thought they were getting a great deal, Walmart is not honoring the prices on the website, and it has cancelled all orders related to the glitch. As reported by reuters.com:
“A technical glitch on the Walmart Stores Inc U.S. website offered some items at a fraction of their actual retail price. Treadmills, which normally cost hundreds of dollars, were priced at $33.16. LCD computer monitors were offered for $9.”
“Ravi Jariwala, a spokesman for Walmart.com, said in the late afternoon that the problem had been fixed and that the mistakenly priced orders would not be honored.
“‘Given the wide discrepancy in pricing, we are notifying customers who ordered these items that their orders have been canceled and that they’ll be refunded in full,’ Jariwala said in an e-mail. Walmart.com will also offer those shoppers a $10 gift card.”
This is somewhat of a disgrace for Walmart as it should stand by all of its advertised prices whether there was a mistake or not. However, online shopping is different from finding a price discrepancy in an actual store because the companies can take legal cover under its “terms and conditions” for the website. According to cnbc.com:
“Consumers vented their outrage on social media after hearing that all orders would be canceled and that shoppers would be issued a $10 gift card, with some asking what good was a card if they would no longer shop there.
“Despite the backlash, industry experts said it is typical for retailers to cancel orders when a major technical error occurs, and that Wal-Mart’s reaction wasn’t that bad. ”
Edgar Dworsky, a former Massachusetts assistant attorney general for consumer protection and founder of Consumer World, points out that many companies take legal cover under the Terms and Conditions area of their websites. As he told cnbc.com:
“For example, a part of Wal-Mart Stores’ Terms and Use section says, ‘Pricing errors may occur on the Walmart Sites or through Walmart Marketplace retailers. Walmart reserves the right to cancel any orders containing pricing errors, with no further obligations to you, even after your receipt of an order confirmation or shipping notice from Walmart.”
Although Walmart has the legal right to retract the orders, as a company that makes billions of dollars, it should have honored the prices. Then the company could have put a positive spin on the story which could have made for a priceless marketing campaign.
