William Robb wrote:

>I asked you once, I'll ask you again: If you walked into a store to buy a 
>quart of milk and when you get to the counter you are told the price that is 
>clearly marked on the bottle as pr quart is actually per pint, and therefore 
>you will have to pay double, would you do so happily?
>If you'd care to, answer me this time.
>
>In essence, this is what B&H has done, and it is what you, Mark, Godfrey and 
>(most unfortunately) Henry is defending.

Bill, you're equating a physical store with a virtual store. There
seems to be a tacit assumption that online stores can or should
work just like physical stores. This is, in and of itself, untrue.
They don't. They can't. They shouldn't.

Here's how a mis-priced item is handled in a physical store: You sell
the product to the customer for the price marked and eat the loss.
That's the right thing to do and it's also the law in many places (it
was in New York State when I lived there). Then you go back onto the
sales floor and correct the price. This isn't viable in an online
store because in the time it takes to ring up the sale and walk back
to the sales area of the physical store the customer in the virtual
store has announced his bargain through Twitter, Facebook, Woot, etc.
and the mis-priced product has been ordered by 100 other people. Or
200. Or 800. B&H's servers can probably handle several hundred orders
a *minute*. Consider an expensive item that's not underpriced by a
mere 50% but with a mis-placed decimal point (it's been known to
happen) that effectively underprices it by 90%... and is ordered by
1000 or so people before the mistake is discovered. Consider a web
site that's been hacked and products re-priced: If the law treated any
of these like a physical store, they'd be obliged to sell everything
at the marked price until they noticed and fixed each erroneous price
(good luck "proving" it was hackers who did it - or, if you're an
aggrieved customer, proving that hackers *didn't* do it when the
seller claims that was the case). 

Mark Cassino's web page was hacked not long ago - they were trying to
upload trojans to site visitors but they could just as easily have
re-priced everything he sells.

Are there any online retailers who *do* guarantee that they'll sell
for the price that's advertised in their online store even if it's an
error? Find one. I haven't been able to. Look at the places that offer
to match competitors' prices (buy.com, for example): They specifically
state that they'll only match *correct* prices - they know *none*
of their competitors will actually sell at an erroneous price, and
they know pricing errors are a realistic possibility so they want to
be protected, too.

The marking of a price on an item on the shelf of a physical store
carries with it a kind of contractual obligation between the store and
the customer. The advertised price in a virtual store, on the other
hand, is treated as "informational" like the price in a printed
advertisement; subject to change or retraction in the case of errors.

Many practices that work in the physical world don't scale to the
speed, volume and security threats of the online environment. As far
as I can tell there are *no* online retailers who promise to sell for
the price advertised on the web site even if it's wrong. This is one
of the policies that simply isn't workable in the virtual world.


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