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The Almighty Buck United Kingdom Idle

Amazon UK Glitch Sells Thousands of Products For a Penny 138

An anonymous reader writes For about an hour on Friday a few lucky Amazon UK shoppers were able to take advantage of a price glitch which discounted thousands of marketplace products to the price of 1p. An Amazon spokesman said: "We are aware that a number of Marketplace sellers listed incorrect prices for a short period of time as a result of the third party software they use to price their items on Amazon.co.uk. We responded quickly and were able to cancel the vast majority of orders placed on these affected items immediately and no costs or fees will be incurred by sellers for these cancelled orders. We are now reviewing the small number of orders that were processed and will be reaching out to any affected sellers directly."
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Amazon UK Glitch Sells Thousands of Products For a Penny

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  • Sigh. (Score:5, Informative)

    by ledow ( 319597 ) on Monday December 15, 2014 @02:01PM (#48602727) Homepage

    WAS NOT AMAZON.

    It was a junky piece of third-party software that automatically adjusted prices for Marketplace sellers.

    The software cocked up, made everything a penny, and - I imagine - everyone stopped using it.

  • currency (Score:5, Funny)

    by fightinfilipino ( 1449273 ) on Monday December 15, 2014 @02:02PM (#48602733) Homepage
    a British penny is worth like 100 U.S. pennies though, so it's ok.
    • Re:currency (Score:5, Informative)

      by oodaloop ( 1229816 ) on Monday December 15, 2014 @02:08PM (#48602775)
      Officially, we don't have any pennies; we have One-cent Pieces. They are colloquially known as pennies, named after the British Penny. Sorry, the anal-retentive numismatist in me had to interject.
      • Officially, we don't have any pennies; we have One-cent Pieces. They are colloquially known as pennies, named after the British Penny. Sorry, the anal-retentive numismatist in me had to interject.

        Wait... you're a real live British person? While we have your attention... please explain Jaffa Cakes to us. They're about the most disgusting things I've ever tasted, and trust me, that's a high bar. Why would you intentionally make something taste stale?!? And orange jelly? With chocolate?

        • To avoid paying VAT on it.

        • Re:currency (Score:5, Funny)

          by leathered ( 780018 ) on Monday December 15, 2014 @03:20PM (#48603647)

          Only if you explain how Hershey's somehow make millions of dollars every year selling products that taste like, to use your colonial vernacular, ass.

        • by mirix ( 1649853 )

          I'm not british and like jaffa cakes. orange and chocolate is an awesome combination.

        • While we have your attention... please explain Jaffa Cakes to us.

          For those who understand, no explanation is necessary.

          For those who do not understand, no explanation is possible.

          Realise this fundamental truth, grasshopper, and you will reach enlightenment and celebrate in the glory of the smashing orangey bit.

        • Wait... you're a real live British person?

          The GP poster was talking about the USA. Britain does have pennies (actually, pence -- one penny, two pence).

      • we don't have any pennies

        They are colloquially known as pennies

        Got it, thanks :)

      • They are colloquially known as pennies, named after the British Penny. Sorry, the anal-retentive numismatist in me had to interject

        There's an ass-penny joke in there somewhere, but I don't think I want to look for it.

    • I'd buy that for a dollar.

  • Hmmmm ... legality? (Score:4, Interesting)

    by gstoddart ( 321705 ) on Monday December 15, 2014 @02:09PM (#48602789) Homepage

    We responded quickly and were able to cancel the vast majority of orders placed on these affected items immediately and no costs or fees will be incurred by sellers for these cancelled orders.

    So, once the order has been placed, haven't you effectively entered into a contract for sale or something?

    At which point you the seller don't really the the option to say "Ooops, we didn't mean to do that, we're cancelling your order".

    Maybe it's different in the UK, but I thought they couldn't change the terms of sale just because they want to.

    If I had made the purchase, I'd be pissed, because this means they can change the terms of sale after they've been offered.

    Your website/pricing stuff broke .. NMFP, you offered it 1 penny, I expect to get it for that price.

    • by Zocalo ( 252965 )
      After a few previous high-profile incidents of this kind of error most online retailers have a clause in their Ts&Cs excusing them from obvious mistakes, errors and omissions, and Amazon is no exception. If they'd had a big banner saying "Special Offer!" or some such, or the price difference was less obvious then it was then the might have had to honour the sales, or done so out of good faith if the damage wasn't too high, but in this case they're pretty much home and dry.
    • by ledow ( 319597 ) on Monday December 15, 2014 @02:18PM (#48602907) Homepage

      No.

      If the price is obviously a mistake, it's not a binding contract.

      Offer and then ACCEPTANCE is a basis of all contract law. You make an offer but then you BOTH have to accept the offer to make it valid. The point of acceptance is not necessarily when you get an email saying Amazon has received your order. It's worded quite carefully.

      Online, you get certain consumer protections but no consumer protection extends to obvious pricing errors, and sellers get the same kinds of protections.

      It's similar to the "moron in a hurry" test. And even a moron in a hurry knows that it's not 1p for a widescreen TV.

      And...

      IT WASN'T AMAZON. It was a third party bit of shitty software that automatically "adjusts" prices, not unlike an eBay sniping tool gone awry.

      • But, But, But .... I want it even if it really is no different from being a petty their to take advantage of what I know is a mistake!

        These are the same self entitled, spoiled brats that loot shoe stores to voice their dislike of cops.

        • by jaymz666 ( 34050 )

          The people that buy 10, 20, 50 of these mispriced items and then bitch they didn't get their products....
          Obviously they KNOW it's a mistake, so screw them

      • Offer and then ACCEPTANCE is a basis of all contract law. You make an offer but then you BOTH have to accept the offer to make it valid.

        No. Offer, acceptance and consideration is the basis of contract law, but any offer is deemed as acceptance once consideration is exchanged. If you go into a store and see a sign saying ice-cream $3 and walk to the counter you can be told "Sorry the sign is wrong it's actually $4". However if you give the person $3 and he takes it they can't then turn around and say, "Actually you know what, I actually wanted $4 for this, here have your money back.:

        Many people have been caught by this over the years. Unless

        • FYI, I don't think your description of how contract law works is correct across all of the UK. For example, consideration is treated differently in Scotland.

          In any case, for a transaction literally charged at 1p, one might reasonably argue both that this is not sufficient to constitute consideration and that there was no meeting of the minds given that an objective observer would obviously not expect expensive merchandise to be sold for only 1p under these conditions.

          (I'm not a lawyer, but as someone who ru

          • In any case, for a transaction literally charged at 1p, one might reasonably argue both that this is not sufficient to constitute consideration

            The way I heard it and have seen it practised in most countries is that the value of the consideration is irrelevant, just that something needs to change hands. I.e. a builder hands over a drawing or breaks the ground with a shovel, or you pay even 1p then the contract is potentially valid in a court of law. At that point breaking out of the contract is something the courts need to decide, and when it does happen fair equity of deliverance comes to play (i.e. 1p is probably all you're going to get if all yo

            • The way I heard it and have seen it practised in most countries is that the value of the consideration is irrelevant, just that something needs to change hands.

              Indeed, but arguably the purpose of recognising nominal consideration is that such consideration is a demonstration of intent to create legal relations.

              We're talking about a commercial deal here, so presumably if money actually changes hands there is a strong implication that a deal was intended even for nominal consideration. I'm just wondering whether the accidental 1p pricing case is so far from reasonable by the objective observer standard that a lawyer could argue it. (I don't know the answer to this,

              • I'm just wondering whether the accidental 1p pricing case is so far from reasonable by the objective observer standard that a lawyer could argue it.

                Maybe, but so far the only case that I know of that has gone to court was found in favour of the buyer. Now in this case it was an expensive yacht bought for a mere 20000pounds from what I recall, but I imagine that for smaller difference the cost and effort to go to court would likely exceed the value of the item.

                I got my 90% accidentally off harddrives under consumer protection laws (someone complained that the HDDs weren't delivered and the company was forced to honour all purchases), but under contract

                • It certainly seems to be true that courts in the UK have shied away from questions of whether any given level of consideration is sufficient, favouring a simple finding of whether there was any consideration or not. My intended point was more that while obvious nominal consideration explicitly written into a negotiated contract might reasonably be interpreted as a demonstration of intent to enter into a binding agreement, in this case I'm not sure how well that argument works. In other words, it's not just

        • by ledow ( 319597 )

          Consider a shop (store if you're that side of the pond).

          They price-gun a ton of items but the minimum-wage employee forgets to change the price. He tags a widescreen TV as 2-for-1 at 0.50c.

          In law, this has arisen for decades. If it's obvious that it's an error, they are not obliged to honour it. If it's not obvious (i.e. he tagged it at 200 instead of 300 or whatever), then they are. It's in the case law, it's as simple as that.

          Whether you are online, mail order or physical store, it's the same. Pricin

    • So, once the order has been placed, haven't you effectively entered into a contract for sale or something?

      No. For online and mail order transactions, the sale is not complete until the product has shipped. There are laws that cover mismarked merchandise, and the vendor has no legal obligation to honor the price.

      At which point you the seller don't really the the option to say "Ooops, we didn't mean to do that, we're cancelling your order".

      Yes, they do have that option. Which is reasonable and fair. Laws should punish dishonesty, not mistakes.

      • by plover ( 150551 )

        That depends entirely on the jurisdiction. In some US states, the price marked is the price that must be honored, or the shopkeeper can go to jail. The merchant doesn't get to claim "computer glitch", because there were so many glitches people could no longer tell them from bait-and-switch tactics. So the laws were passed in favor of the consumer, and if the merchant's computer systems aren't up to the task, it's not the problem of the general public.

        Doesn't matter if you think it's fair or unfair, it's

        • Those laws generally apply to retail stores with displayed price signs.

          They generally do not apply to online sales.

          If you know of a court case where they do, please post, i would be interested in seeing it.

    • by Dunbal ( 464142 ) *
      Software should obviously only be allowed to screw the consumer, not the middle-man seller! Seriously I have to ask myself what value these re-sellers provide when they even rely on software to price "their product" for them. I agree they should be held to their contracts in an effort to encourage most of them to make a real living.
    • I think Amazon UK just created a precedent. What goes one way must work the other way too. That means you should be able to order hundreds of items and then cancel them all without any fees or penalties. After all it wasn't your fault, it was a "computer glitch" too.

      • by Anonymous Coward

        Amazon already lets you cancel any items you like free of charge all the way up until the time they are delivered to a carrier.

      • by DrJimbo ( 594231 )

        I haven't canceled hundreds of orders on Amazon but I have canceled a handful. There has never been a fee or a penalty although I did have to fill in a small form explaining why I canceled.

        If you did this maliciously with a bunch of items just to be a PITA then they would probably respond accordingly and cancel your account.

        OTOH, I have had a seller raise the price of an item after I made an inquiry about it. That really pissed me off. I complained to Amazon but they said it was within their ru

      • Doesn't it already work the other way? A seller is offering a product at a stated price. A buyer states that they will pay that price for the product. The sales contract is in effect when the seller ships the product (implicitly accepting the deal), and charges the buyer. If the buyer realizes before the product ships that they'd like to back out of the transaction, they can do so.

        At least, that's the theory. In practice, a seller may not be completely honest about whether the product has already shipped o
      • You can already do that. Amazon even has a policy of holding processing of credit card transactions for a short window (usually 30 minutes) so that people can cancel mistake orders before the charge occurs.

        Even after that, until a product has physically been shipped, both the seller and the buyer can cancel an order. Depending on the reason there may be penalties (a ding to the performance rating for the seller, for example). Buyers generally are never penalized for anything, particularly on Amazon.

        • Actually the laws here are biased towards the consumer. If the price is reasonable believed to be not a mistake (which this clearly wasn't) then the offer has to be honoured by the shop because otherwise you'd have a million bait-and-switch false adverts by shops. The consumer does still get 7 days to cancel.

    • No. Try not to be an entitled asshole. You'd have no right to be pissed, and show yourself to be irrational. You don't get to steal because of pricing errors.
    • by Anonymous Coward

      How the UK Government Office for Fair Trading regards this:

      A right for the supplier to cancel a contract without notice may be fair if its use is effectively restricted to situations in which there are 'serious grounds' for immediate termination. These might be circumstances in which there is a real risk of loss or harm to the supplier or others if the contract continues for even a short period .

      In short for exigencies like this the supplier has the right to cancel the order.

    • So, once the order has been placed, haven't you effectively entered into a contract for sale or something?

      Most likely the sale is only entered at a later stage. Could be if the charge your credit card, could be if the ship.

      And most likely, they have terms and conditions that basically say "we offer what you see on the website, except if there are obvious mistakes". And the only way you could complain is if you spot a pattern, like if this happens repeatedly, or if they refuse to sell to you but don't change the advertised price.

    • So, once the order has been placed, haven't you effectively entered into a contract for sale or something?

      AIUI suppliers in general don't formally accept orders until they ship them. .

    • There's a period of time between when you click "Submit" and when the order goes through. It's like a few minutes or and hour... anyways, until that happens, either end of the transaction can easily cancel it. In fact, until it's shipped I believe you can as well. Once I had an order that got screwed up horribly bad... I got into an argument with the owner in the comments section to the point that he got so mad, he stopped shipment on my order and refunded my money (which was what I wanted anyway) So yea, u

    • You also believe that if someone leaves their door open you can rob them blind. Right?

      People like you are bad for society.

    • So, once the order has been placed, haven't you effectively entered into a contract for sale or something?

      No, not until your credit card has been charged. If they have done that then you have them under the credit card agreement but before that they can wriggle out of it as a mistake under their own terms.

    • If you walk up to a cash register and hold out a handful of money, is the store contractually obligated to accept your money at that point? No, they are not. And that's all placing an order online is. No money has changed hands until the card is charged, and that happens later on for Amazon orders.

    • Your website/pricing stuff broke .. NMFP, you offered it 1 penny, I expect to get it for that price.

      Expect into one hand. Shit into the other. See which one fills up faster.

      By placing an order, you agree to the privacy policy and conditions of use.

      "With respect to items sold by Amazon, we cannot confirm the price of an item until you order. Despite our best efforts, a small number of the items in our catalog may be mispriced. If the correct price of an item sold by Amazon is higher than our stated price, we will, at our discretion, either contact you for instructions before shipping or cancel your order

  • It wasn't a glitch at Amazon but from a third party software. But headlines never were the strong point of Slashdot ;-)

  • RTFA, it wasn't Amazon but some piece of software called Repricer that automatically updated the prices. Amazon caught the mistake and cancelled some orders.
    it was so bad competitors were calling each other to give a heads up

  • First we got skyrocketing prices, now a glitch is causeing near 0 prices. How hard is it to manually set a price, or at the very least set minimum bounds based on the cost to produce and reasonable maximum bounds?
    • Repricing manually is great when you have 50 listings. Bump that up to 500, or 5000, and you need software to do it. The problem here is that a bug meant the third-party tool didn't respect the minimum bounds that had been set by the sellers.

      • If you cannot even be bothered to set a price you are not paying enough attention to sell it.
        • It is an issue of scale. When you have sellers constantly entering and leaving a market as their stock is depleted, prices are not fixed and are adjusted with the market. You can do it just fine if you only have a few listings, but when you scale up to warehouse-level inventories you need software to manage it.

          Hint: Amazon adjusts the prices of their own listings on a regular basis based on demand and the prices of FBA and MF sellers, and they don't do it manually.

          • This has become a significant issue for my friends and family this holiday season, to the point that in some cases we have just walked away from the Amazon ecosystem entirely and bought elsewhere.

            If you can change prices so fast that a customer can't look up something we're interested in buying, call their partner in to check it before confirming the order, and then add it to a basket, and the price change can be literally doubling the price from a good deal to a complete rip-off, then the experience of sho

  • by Zontar_Thing_From_Ve ( 949321 ) on Monday December 15, 2014 @02:52PM (#48603353)
    Just last week I looked on Amazon for an old CD that's now out of print. It's an old classical music CD not rare or of particular interest outside of fans of the artist. In fact, you can rather easily find it available in MP3 or AAC formats on Amazon, iTunes, and a few other places. One seller only wanted 1 cent for a used copy with about 2 to 3 dollars for shipping. Sometimes people will sell old CDs, DVDs or books that have little collectable value for 1 cent just to make it up a little on shipping charges because Amazon ranks the copies by lowest price first in the Marketplace without counting the shipping cost. So while you could charge $2.01 for it and offer free shipping and make just as much as charging 1 cent and 2 dollars shipping, the 1 cent offer will go to the top of the list and the $2.01 offer in my example would be listed after anyone with a lower cost for the item, even if the item+shipping cost was much larger. You could sell it for 1 cent and charge $4 for shipping and get listed earlier than a $2.01 charge with free shipping.
    • Sort of. The "buy box" that shows up on a listing uses a bit more complexity than just list price. It also factors in FBA vs MF, seller rating, etc. You'll sometimes see cases where the seller in the buy box is not the cheapest offering.

      On the "all sellers" page for a listing the default sorting order is List + Shipping, so a $2.01 w/Free Shipping would appear above a $0.01 + $3.99 shipping.

    • I find this to be really irritating when sellers on eBay do it... but Amazon actually fix shipping prices for Marketplace. For instance, shipping on books/CDs/DVDs/games is $3.99. (Full list [amazon.com].) For sellers on Amazon Marketplace, a price of 1c means "we would've sold this to you cheaper, but Amazon won't let us."

      What they ought to do is to just merge the shipping price in with the product price. Combined shipping would make that impossible (since the price would depend on what other items you have in your bas

    • by AmiMoJo ( 196126 ) *

      Amazon UK lists the cheapest total price including shipping, and is even clever enough to know if you get Prime discounts and take them into account when ranking offers. I'm surprised the US site doesn't do it.

      The reason some items get down to the penny level is that sellers use software to automatically set prices at or a little lower than the lowest offer on that item. They put in their fixed shipping cost and let the software set the sale price. They will often have thousands, or even tens of thousands o

  • Because most Marketplace sellers on Amazon UK charge postage (and often hefty amounts even for small/light items), they often use a bad feature of Amazon's "sort by price" option - it doesn't include postage in the sort - to mark many items as costing a penny. Those items then very annoyingly appear first in multiple pages of "sorted" results and it's only when you click on them that you find the postage is 500 times the so-called cost of the product.

    If you ask me, it's karma coming back to bite those selle

    • Weird, because Amazon in the US sorts on price+shipping, not just on price. It works out to the same thing for some products (i.e. books), since shipping outside of Prime is a standard $3.99. It will, however, include Prime, so if you have a book selling for $0.01, with $3.99 shipping, that would rank below a book that qualified for prime with a price of $3.98.

  • "Penny?" knock knock knock. "Penny?" knock knock knock. "Penny?"
  • If you saw an item that should cost $10 priced at $0.01, and you believed the listing erroneous, would you take advantage of the error to get a quick bargain? What if the item should actually cost $1000?

    If so, what is your justification?

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