Can a company bill your credit card after a sale is already done if they made a mistake?

Question

I bought a couch from Sears Canada’ s website for $19.99+tax (twenty dollars) which is obviously an error on their part. They had the same couch listed in a separate area of the website for $1599.00+tax. I actually picked the couch up at one of their pickup locations and it says on it $19.99 on the “bill of sale” sticker attached to the plastic wrapping of the couch. I verified that in fact they billed my Sear’s Mastercard for $19.99+tax. So far they have not noticed, not even the person at the pickup center where I had to sign that I picked it up.

My question is, what legal rights do I have or they have once they realize they sold a brand new couch for $20? Can they ask for it back? Can they bill my Sear’s Mastercard without my permission if they choose?

Their terms and conditions are located here --> http://www.sears.ca/gp/node/n/46773011/104-6829217-1675117?ie=UTF8&searsBrand=core

I see it says they can cancel my order even if my Credit Card was billed but what if I already have the merchandise?

Answer 1

.   Sears has some of the best "under $20" furniture of any major retailer. It is not built with very expensive materials but they look fine.

I think you owe Sears some money. There is a legal theory called "Unjust Enrichment".

Answer 2

I didn't read the link and I'm not a lawyer, but I would guess that since it's a Sears card you are bound by their terms and conditions.  So I would call myself lucky, but watch my statements for future bills.  If what the other guy said is true and you willfully broke a law, then fess up and clear your conscience.  But it sounds like somebody on their end made a mistake...and the worse thing they can do is correct it (I mean, you were planning on paying $1600 for this couch anyway, right?)

I rented a U-Haul and gave my credit card number for a deposit.  They were going put a $400 hold on the card ($300 for the rental based on mileage, and $100 for the deposit).  I was told that the actual amount, close to $300, would be charged on the card when I returned the truck.  So when I did, and wanted to write a check for the amount, I was told "too late, your card has already been charged"   I was a little perturbed since that's not what they said they were going to do but I got over it.  The guy at the rental return place actually looked up from his computer and asked me where I drove this in from...like I had come from Mars or something.  It wasn't until several weeks later when I saw my credit card statement that his confusion made sense.  U-Haul charged me $30 dollars, not $300.  I didn't want to get into trouble so I called the 800 number, but since my bill of sale that I signed said $30 (I apparently didn't read what I signed) and the company billed me that amount, the only person I could get on the phone acted like I was a major inconvenience for the company.    

I guess I consider it karma for all the times I've been overcharged and had to fight the machine to get things straightened out.  

Answer 3

While I don't live in Canada, years ago I worked in retail and I can give you my experience on such situations.

It is perfectly legal for them to charge you again for the merchandise, since you apparently knew the price was incorrect before purchase. In most cases (again I'm not sure about canada, so I'm speaking from the US) stores are not required to give an item to a customer if they (the store) discover that it has been mispriced.  However should a customer purchase an item knowing that it has been mis priced,  doing so in an attempt to get the item at a lower cost than it ought be, the store has several options.

The main one is to turn the customer over to the authorities and request they be charged with shoplifting "Theft by Conversion."  In that case they need to only prove that the item was mispriced and a reasonable customer would have known this and not tried to exploit it.

The second choice they may take, again which is perfectly legal for them to do so, is to recharge the customer (if paid with a card) for the remainder of the purchase price.  

Lastly, they can contact the customer, instruct them of the issue, and then work things out with them.  Most of the time these types of calls are the "We know it's mispriced, and here's what we're going to do..."

In the last case, the customer is instructed to bring the item back, or else the company or store will go the first route and file charges.

In your case, I'd advise you to contact the store's billing department as SOON as possible.  You want to come out on the better side of things here, so you need to make every effort to show that yes you knew the price must have been wrong, but did not expect them to actually charge the lower price.  Speak with them about it, and offer to return the couch if they wish, since you don't want to pay the full price or be prosecuted.  

Best case, billing may tell you to keep it but ban you from ever making purchases there again.

Worst case, they say no and press charges.

Answer 4

No they can't. bill you with out your permission. in this case. so long as the price on the web site and the invoice are the same. you can tell them that the price is the only reason you bought it and that you are not going to give it back. the $700-$850 mistake isn't worth the cost to pursue it.

now had the price you paid at the website been 1599.00 and you got to the store and they charged you 19.99 then yes they could correct a mistake and bill you (they would notify you first)