Pre-Ordering - Increased Prices?

BDEE · 29 Apr 2014 at 14:59

Anyone had experience of being asked to pay more for something which you paid for in full on a pre-order?

I have an item on pre-order from a shop in London via their website which was due for release in December last year. Delays from the manufacturer have meant it was not released, but it is expected to be at some point H1 this year, but the shop has advised me they are looking to ask for more money because the wholesale price has increased significantly.

I'm not sure what consumer rights are when it is a pre-order rather than ordering an off the shelf, available item?

Also if I refuse to pay the extra, can the shop simply terminate the contract and fully refund me (and therefore leaving me having to pay the new amount anyway?).

Cheers

stoofa · 29 Apr 2014 at 15:14

Usually depends on the terms and conditions of the store in question and the "small print".
Pre-orders can be dangerous for a retailer, especially if something is released at a much higher price than expected.
Amazon offer the "pre-order guarantee" which means the price you pre-order at is the price you pay no matter how much the price might go up on release (and if the price drops on release they charge you the lower one) - actually a lot of retailers off this kind of guarantee.

I'd expect small print along the lines of "unless the release price of said item is significantly different to the pre-order price".

Did the retailer take the full amount at the point where you made your pre-order? If so you could argue that a contract has been secured, you tendered your offer and it was accepted.
If you were only asked to pay a percentage of the price or nothing at all then I expect your options will either be to pay the higher price or take a full refund.

Check terms and conditions of the store and I'd say you have a far better argument if they have taken the full amount off you.
Where you stand legally - that's beyond my scope.

BDEE · 29 Apr 2014 at 15:25

I paid a deposit, then I was invoiced for the remaining amount three months later on the understanding it was immanently going to be launched.

There is very little in the T&C's but this is on their site:

"The total price payable for the goods and delivery will be as shown at the time when you place your order. We are entitled to make adjustments to the price if due to an error or omission the price published for the goods is wrong whether or not the order has been confirmed. Errors like these are very unusual, and we will always inform you of the correct price and give you the opportunity to cancel the order."

Now the price at the time was NOT an error and is only being increased due to the wholesale supplier.

The thing is that it's a small retailer and I appreciate it's not really their fault and I don't want to screw them over by any means, but if I am in a binding contract then I am in a binding contract and I can see other sites still with the same price tag on (Amazon interestingly are not accepting pre-orders for it though).

Tough one.

TheLegendOfMart · 29 Apr 2014 at 15:27

But it says: "We are entitled to make adjustments to the price if due to an error or omission the price published for the goods is wrong whether or not the order has been confirmed.", that doesn't say at the time of order, it just says generally they can do it.

Buy it at higher cost or cancel your pre-order.

£15 · 29 Apr 2014 at 15:35

Where there is ambiguity in a T&C, then any dispute arising from it is decided against the party that wrote the terms (or words to that effect).

I would push the fact there is nothing specifically relating to pre-orders, e.g. having to increase prices. I think what they mention above is covering them for errors, e.g. advertising something for £10 instead of £100, not pre-orders.

The fact they took a deposit and then the full amount works in your favour. However, T&Cs often state that a contract isn't formed until the goods are despatched, despite money having being taken. Do they say this?

It all boils down to how much time & effort (money) you are willing to put into the issue. Sometimes it's better to simply vote with your feet. Are we talking tens, or hundreds of pounds here?

BDEE · 29 Apr 2014 at 15:41

"Placing an order indicates your acceptance of these terms and conditions"

But it also says
"All products and services are subject to availability and may be withdrawn at any time. If we do not supply the goods for any reason we will not charge you for them, and we will refund any money already paid."

So I think basically if I don't pay it looks like they can just choose to cancel it and refund me?

In which case I will see if I can get the pre-order elsewhere if I can get it at the same price.

£15 · 29 Apr 2014 at 15:48

Yes. If they refuse to supply the goods at the pre-order price then I see them offering only two solutions - you pay the higher price, or they offer you a full refund.

Changing the price changes the contract. They'd have a hard time forcing you to pay the extra.

Have you telephoned them to ask?

cheesyboy · 29 Apr 2014 at 16:45

BDEE said:
"Placing an order indicates your acceptance of these terms and conditions"

But it also says
"All products and services are subject to availability and may be withdrawn at any time. If we do not supply the goods for any reason we will not charge you for them, and we will refund any money already paid."

So I think basically if I don't pay it looks like they can just choose to cancel it and refund me?

In which case I will see if I can get the pre-order elsewhere if I can get it at the same price.

That bit's pretty meaningless. It's not a get out clause for breaking the contract other than if there is an issue with availability. They can't claim the item is unavailable if they are (for example) going to go ahead and sell it in store at a higher price.

" If we do not supply the goods for any reason we will not charge you for them, and we will refund any money already paid"
Well, yeah. Otherwise, they'd be going to court :rolleyes:

If they back out of the contract (if the contract didn't stipulate a break-off clause) then you can go ahead and buy elsewhere and sue them for any mark-up you've had to pay compared with the original contract. Though this may not be worth your while.