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By Andy McCue, 5 August 2003 14:59

NEWS PC World Business has a "fairly weak" case against a customer suing the firm over a website pricing blunder involving the purchase of 2,000 CDs. In what could set a legal precedent in the UK for honouring goods ordered when they are priced incorrectly on the internet, Graeme McKenna has issued proceedings against PC World Business (PCWB) in the small claims court. The CDs were priced online at £0.89 for a box of 100 when they should have been £0.89 each. McKenna ordered 20 boxes thinking they were end of line clearance stock and PCWB confirmed the order debited his credit card for the amount. But when PCWB realised the mistake it delivered only 20 CDs based on the correct price. After McKenna complained the company offered a refund but refused to honour the incorrectly priced order. PCWB is a leading vendor of PCs and other IT hardware and software in the UK, located in 120 PC World outlets, offering some 20,000 products, as well as selling online. Since then McKenna has issued proceedings in the small claims court for £2,080, which would allow him to buy the original 2,000 CDs he wanted at the price now quoted by PCWB. PCWB has failed respond to requests for comment but Struan Robertson, IT lawyer at law firm Masons, told silicon.com there is a lack of clarity in PCWB's procedures and terms and conditions. He said: "PCWB appears to have a fairly weak case here. The email acknowledgement sent to customers made clear that it did not constitute acceptance of the order - which is good practice. However, it failed to say either in its acknowledgement or in its online terms and conditions when exactly the contract is formed." As this website pricing has not been put to the test in UK courts, Robertson said e-tailers need to make customers aware of their conditions. He said: "This case highlights the importance for e-tailers of getting their order systems right. Pricing errors will occasionally happen but if an e-tailer has suitable processes, website terms and conditions and order acknowledgements, it can politely and legally refuse orders that are placed for items listed at incorrect prices." PCWB has until 16 August to respond to the action by McKenna.