Compaq Australia faces lawsuit over one cent laptops

Compaq Australia may be facing a class action lawsuit from irate customers who feel duped by the hardware manufacturer's accidental Web site promotion of Presario laptop computers costing just one cent.

ZDNet Australia has received complaints that Compaq is refusing to honour the promotion, which the company has blamed on a Web site system glitch.

Manpal Jagpal, Compaq Australia's Presario product manager, said an -intermittent" system anomaly led to incorrect pricing details being displayed on its Web site, but said the mistake was quickly spotted and corrected.

-On Thursday night and Friday morning we had intermittent pricing being pulled through on our system's Web borders. The customers, when they looked at the site, would have seen the correct price, but when they actually went to the final details they would have seen them pulled through as one cent," he said.

-It's definitely a system glitch and it's purely because it was pulling through the pricing incorrectly. It didn't actually do that all the time - it was very, very intermittent. We picked it up first thing Friday morning."

The pricing boo-boo affected two Presario models, the 711 and 1722 which usually sell for AU$2799 and $3999 respectively, according to Jagpal, who added that -less than 200" customers had attempted to buy the unusually inexpensive laptops.

One customer who spoke to ZDNet Australia, refused to accept Compaq's excuse and refuted the vendor's claim that -less than 200" sales had been affected by the glitch.

Matt Cust, managing director of Victorian Web development company AKN Media, said he was one of the first to spot the incredible offer and immediately posted a notification on a popular Internet news group. This posting, he said, led to a flood of people seeking to take advantage of the offer.

-The Web site printed out a receipt for the transaction. We've been in touch with [lawyers] Slater and Gordon this morning. Five hundred people bought those laptops. I was the first person to discover the offer. I posted it in [a chat room] and I've got a list of everyone who bought one. You can see by the order number on the product. I was the first person to get one and I was person number [in the chat room] number 738 and the last person was number 1102 or something like that," Cust said.

-There was over 500 laptops bought - people were ordering ten at a time. At one cent a go, that's ten cents, so why wouldn't you?"

While it regrets the incident, Jagpal said the company was not duty-bound to honour any of the one cent deals because it didn't process any payments.

-We sent e-mails saying 'thank you for your interest and we've received your inquiry'. But we only send receipts once the money has been transacted. In this case, none of the money has been transacted and none of the credit cards or any other payment details were taken through."

Cust has also questioned Compaq's legal obligations in relation to the mistaken offer, and said the company's own sales policy clearly indicates the customers' entitlements to the one cent deal - regardless of whether or not it was intentionally offered.

-We've printed out the receipt and looked at the terms and conditions on [Compaq's] Web site which say that all sales are final and binding as soon as you push the 'sale' button," he said.

-We saved all the copies of everything - screen shots everything - because we knew that [Compaq] was going to claim it was a mistake. We saved everything. When we first saw it we thought it was some sort of promotion because it was merger day."

Cust said the pricing blunder is symptomatic of larger backend problems within the Compaq Web site, and is confident that customers will win legal proceedings forcing the vendor to honour the promotion.

-[The pricing glitch] was actually a result of buggy ASP code. Their whole site is as buggy as shit. There's holes all over it," he claimed. -[Lawyers Slater and Gordon] are looking at the documentation and they're probably going to take it on because they reckon we can win."

-We're trying to pressure Compaq into honouring at least some of it - maybe one laptop each person. At the end of the day, [Compaq] wrote the code, it was their code that was buggy and there's an obvious hole in it. The crazy thing is if you go into the Compaq Web store right now and enter your purchase code, it's still coming up as a proper receipt and if you want to get in and see the last 20 orders with the people's details, you can do it. The whole thing is so buggy it's unbelievable."

Compaq Australia failed to respond to further requests for comment by press time.

Advertisement

Talkback 38 comments

    A reasonable human being would ...Anonymous -- 06/05/02

    A reasonable human being would have realised it was a mistake and wouldn't be so daft as to think they'd actually get one for 1c.

    Surely, 99% of those who ordered them had no intention of buying one at the full price to start with, thus they are merely opportunists that live at the bottom of toilet scum.

    Compaq should just flick them the big finger, or offer them the laptops at a (normal) discounted rate. Those that actually wanted one, would buy one. Those that didnt can crawl back under their rock.

    Anonymous eh? That's funny cau ...Ted Turner -- 06/05/02

    Anonymous eh? That's funny cause I know a guy who works at Compaq that goes by that name...

    What a corker. Nice work getti ...Anonymous -- 06/05/02

    What a corker.
    Nice work getting that one...

    What kind of idiot would serio ...Anonymous -- 06/05/02

    What kind of idiot would seriously believe that Compaq (out of all manufacturers) would sell notebooks for 1c. Anonymous is correct in his classification of this type of individual. I mean what is this loser going to do with his 10 notebooks ? Turn them all on at once and then titter with glee at how cheap they were ? What is he going to do with them 10 seconds later, when the novelty has worn off ?

    Oh and I must say I am INCREDIBLY surprised at the lawyers jumping on the bandwagon. Still, I guess it gives them something to occupy their tiny minds for another month or so........

    Oh by the way, I don't think t ...Anonymous -- 06/05/02

    Oh by the way, I don't think that any sensible corporation would take their cues on what's buggy and what isn't from a web design company....I think we've all seen enough web sites to know better.

    Congrats to Mr Cust, you've just made an absolute fool of yourself and probably harmed your company's image irreparably.

    So you people have never impul ...Anonymous -- 06/05/02

    So you people have never impulse bought???

    The "holier than thou" comments sound a lot like sour grapes to me...and my order confrmation number was a lot higher than the numbers quoted in the articles here, so I am not sure who is kidding who.

    What kind of moronic idiot thi ...Anonymous -- 07/05/02

    What kind of moronic idiot thinks you can buy a laptop for 1cent.
    This really says a lot about *some* australians.

    If people can't afford the rea ...Anonymous -- 07/05/02

    If people can't afford the real price of a new laptop then perhaps they should stop dreaming and try the second hand market, One cent laptops, dream on!

    If people can't afford the rea ...Anonymous -- 07/05/02

    If people can't afford the real price of a new laptop then perhaps they should stop dreaming and try the second hand market, One cent laptops, dream on!

    If some people can't afford th ...Anonymous -- 07/05/02

    If some people can't afford the real price of a new laptop then perhaps they should stop dreaming and try the second hand market, One cent laptops, dream on!

    The exact same thing happened ...Boba Fett -- 07/05/02

    The exact same thing happened to E-store. Regardless of whether it is "reasonable" for a company to sell a piece of a equipment at this price, it is important for companies to take responsibility for the content they present to the public. This isn't about cheap hardware, there's a much larger issue involved where the web is seen as the sort of medium where large corporations and retailers are allowed to just say "oops". We need stronger regulations in regards to content accountability. If they're allowed to recant on a price today, then what's next?

    Maybe Mike Cust should spend t ...Anonymous -- 07/05/02

    Maybe Mike Cust should spend time developing his business instead of being a troublemaker.
    Maybe he can develop some totally-foolproof-never-ever-get-it-wrong-web-shopping-software to help compaq.

    He probably would sue McDonalds for serving hot coffee as well.

    By the way, Phil. Give the &qu ...Boba Fett -- 07/05/02

    By the way, Phil. Give the "submit" button a rest, you twit.

    Where (or what) is AKN Media a ...Anonymous -- 07/05/02

    Where (or what) is AKN Media anyway? They seem to be a non-entity as far as Goog;e or Altavista concerned. (Apart from what looks like a leaked
    "secure" site at Google and a porn site Altavista, there is nothing to be seen)

    Great anti-publicity for Matt Cust to get his name in the press...what a loser!

    serves compaq right. One thing ...Anonymous -- 07/05/02

    serves compaq right.
    One thing I hate (as a web dev) is seeing corporate sites with so many bugs and dodgy ASP coding.

    OMG!

    I work for a real store, not g ...Anonymous -- 07/05/02

    I work for a real store, not going to say who/what it is, and if we have advertised a price, no matter what it is etc, we are bound to sell it at that price. In supermarkets, you even get the item free if it comes up at more than the advertised price - welcome to the world online, you must honour your advertised prices...

    google? altavista? you anonymo ...Anonymous -- 07/05/02

    google? altavista? you anonymous n00b!

    Extracted from ASIC's database at 12:16:22 on 07/05/2002
    Name AKN MEDIA
    VIC B1582888H

    Type Business Names
    Registration
    Date Unknown
    Status Registered
    Principal
    Place of
    Business not available
    Jurisdiction Office of Fair Trading & Business Affairs,Victoria

    They have an ABN??? Oh, that's ...Anonymous -- 07/05/02

    They have an ABN??? Oh, that's different then. They must be a real media and web development company then. They are still developing their web prescence for a massive worldwide launch. The only thing stopping them though is they only have 5 cents venture capital as the development platform . They were hoping to buy 5 laptops and ....well you know the story.

    I just think this is such a laugh, but I am also very sad. I actually work for Compaq you know. I don't actually care whether we get sued sucessfully or not. It is sad that people are not willing to forgive and get on with life, even business life. An *obvious* mistake was made. Please, please do not think that life is about taking whatever you can get. Your own peace of mind is not worth it

    yes AKN has a web-site. I just ...Anonymous -- 07/05/02

    yes AKN has a web-site.

    I just did a quick serch using possible domain names. Use www.akn-media.com and check out the company for yourself.

    The article should have quoted it since he was listed as an expert.

    The Lawyers are only doing it ...Anonymous -- 07/05/02

    The Lawyers are only doing it for the money, they will probably make big dollars out of this one. In the end they are the only ones who win, why does this sound so familiar? .

    The normal test is what would a reasonable person think and do in this situation. Compaq say that the correct price was displayed on the item but there was a intermittant code error which incorrectly calculated the price.

    The reasonable person would assume that there has been been some error. As has already been said no reasonable person would really believe that a company would sell laptops that normally retail for $3999 for 1c.
    This is especially the case when the correct price was listed next to the product in question with no mention of any special price.

    Anybody who tries to claim otherwise is just a gold digger.

    I work for Compaq.... Seriousl ...Anonymous -- 07/05/02

    I work for Compaq....

    Seriously, what a f**%^&g tool Mr Cust is for trying to get something like that. I mean for 200 units,. that's over half a million dollars of stock for what... $2????

    Geez.. Grow a brain and get life, stop d**king around on stupid things like this and get back to work you id**t!

    what goes around, comes around ...Anonymous -- 07/05/02

    what goes around, comes around.

    Mr Cust is taking advantage of people's mistakes for his own gain.

    What type of example for you trying to protray for your company, a company who will take advantage of anyone who did a mistake, your customers, suppliers; your employees.

    maybe at the end of the day you might get what you wanted, but you will the one who will get the backlash.. and you as a person, you as the company.

    Any other shop must sell produ ...Anonymous -- 07/05/02

    Any other shop must sell products are the marked price, evidently people actualy got receipts and everything and compaq are lying about it being a minor glitch as all the screenshots i've seen show BOTH areas of the page showing a price of 1c not one as Compaq claim.
    Basicaly if you walk into Myers or Target or Harvey Norman and someone has made a mistake and marked the price of a laptop wrong at 1c then they legaly must sell you the product at that price. I fail to see how the Compaq situation is any different.
    To all those accusing these people of being opportunists I say "Yeah ..so what?" Its Compaq's fault and Compaq's gotta wear the consequences.
    The Compaq spokesman in the article claimed falsely that no one had been billed but according to several people in Yahoo chat people have indeed been debited the 1c and have the bank records to prove it.
    Compaq are handling this very badly and while I seriously doubt anyone is going to bother sueing them for 1c I still think that there is a principle involved here relating to if the rules of online shopping should be more lenient for the vendor then the rules in a bricks and morter store. One thing I know for sure is that if a bricks and morter store had made a similar mistake that they would have had to honour the price by law.

    The price I saw next to the pr ...Anonymous -- 07/05/02

    The price I saw next to the product was 1c. The price when placed in the shopping trolley was 1c. The price confirmed to be taken out of my credit card was 1c. The price in the order confirmation was 1c. I even rang Compaq after placing the order to confirm my credit card details were correct and was told that my details were correct and my order would be processed as "everything was fine".
    I cite the the roll up of Gateway. They placed speakers and other hardware online at a vastly reduced price, when they ran out they sent the next model up, the prices these were sold at were similar to the 1c deal here. A quick easy way to get rid of prebranded stock ...and suprise suprise on the day Compaq disappears into the HP black-hole and there are 1c laptops for sale online.
    I for one will be interested in the outcome. I haven't been contacted by Compaq as yet to say my order is cancelled (I didnt supply an email address only daytime phone number) and as the online ordering part of the Compaq site is now shut down I can't even check the status of my order. I guess in contractual law terms after offer,consideration and acceptance has happened with no revocation that means my order still stands.....

    Santa does not exist. I feel s ...Anonymous -- 07/05/02

    Santa does not exist. I feel sorry for nerds who engaged lawyers to force Santa's appearance. You will soon discover that the legal fees will make the laptops look like a bargain at twice the price.

    Check out the AKN-Media HTML s ...Anonymous -- 08/05/02

    Check out the AKN-Media HTML source code!
    So much for not making mistakes Mr. Cust. His buggy web site can't even decide who owns copyright. Is it AKN Media or mrdesign@powerup.com.au?? Also why do you use the keyword "Photography" twice? It serves no purpose but to consume my bandwidth. Mr. Cust could also do a better job to compress his jpegs.

    Mr. Cust, I don't think throwing stones in the glass internet house was all that clever with this negative publicity on permanent record. Compaq isn't the only with faulty code.

    (If you want to visit http://www.akn-media.com/pages/akn-page-web.htm you can View Source to see and judge for yourself)

    You guys are such idiots. Any ...Anonymous -- 08/05/02

    You guys are such idiots.

    Any other business would have to stand by the price wether it be in error or not. Whats the different to online. I think online business's need to accept their liability and also compaq need to stop lying about what happend.

    The price did show as 1c on the catalog, it never reported the correct price and then changed, and it was a little more than intermitent. It showed up as 1c and thus i clicked to buy, i mean seriously who wouldnt. You see a laptop for 1c, you would jump on it wether it be an error or not. Still compaq need to stop lying about it and accept it, stop trying to weazel out of it. And STOP LYING ABOUT IT.

    Compaq is saying no transactions were made, then why are there debits on the credit card for 1c for the laptop, and why did they come from compaq hmm ? jee its pretty simple to answer that one, transactions did take place and compaq are lying about it.

    Secondly compaq didnt fix it, they merely removed the offending product as it was only on 2-3 suposedly that it affected. Anyway they have only now closed down the page and hopefully are recoding it.

    Also compaq saying it found it in routine checks is BS aswell, if it could be found on routine checks why wasnt it found before hand ? you would assume if u change anything you would run this so called routine check.

    Anyway i have screenshots proving my order and proving that it was displaying at 1c from the beginning, so compaq stop lying, accept the liability and you people who keep bitching about it, you would have jumped on it had u got the chance and companies have to accept liability. Otherwise what does it say for online transactions.....

    Since when did so many people ...I can be anon too -- 08/05/02

    Since when did so many people care about corporations?
    Or are these anonymous Compaq web developers trying to hold onto there jobs?

    I too noticed that the price r ...Anonymous -- 08/05/02

    I too noticed that the price reported was 1c through the entire purchase process.

    Having only ordered one unit, in one order I now find myself with two cancelled orders. What would have happened if these were at the full price? Would my credit card be attempted to be billed twice?

    Compaq needs to stop lying about the whole process, it wasnt intermitent as they claim, for 2hrs after I ordered my notebook the 1c price was displayed, according to word on the internet the 1c had been displayed for over 7hrs before I even ordered mine.

    I agree with the comments of others in this forum, that the lawyers will be the ones that will come out the winners in all of this. However I feel that Compaq needs to answer alot of questions.

    Bricks and Mortar businesses need to stand by their advertised price regardless of what the price is, and it seems that if e-commerce stores advertise a price which they later to find to be an error that they can cancel any purchases made at that price.

    I wont be holding my breath on this one, and don't expect to be recieving a notebook anytime in the near future from Compaq (or HP). But do feel that Compaq need to be handling the situation a whole lot better.

    I used to work for Compaq as o ...Anonymous -- 08/05/02

    I used to work for Compaq as one of their leading Conflict Resolution people, and i'll tell you that i've had to deal with this same type of issue before.
    As someone that has had to endure internal bullshit like this, i think that if the people that bought the laptops at the agreed price should be able to pay what was on the site.
    Just between me and the rest of Australia, the site is maintained in the U.S, so Compaq here don't know what's going on most of the itme.

    I think that these people should be able to take advantage of the offer.

    Give Compaq hell! :)

    I also work for Compaq. And I ...Anonymous -- 09/05/02

    I also work for Compaq. And I'm a product loader. And for the ignorant who wrote what is below, there is only one thing I can say "I guess that is why you are not working for Compaq, or should I say "The New HP" anymore. Happy Job Hunting!!!

    And by the way, I didnt see anything in the article about the actual product page displaying it was a promotion, did it say that? If it didn't then why would you assume is a promotion?

    Get a life, get a job!!!

    __________________________________________________
    Fullname: Anonymous
    Location: Sydney
    Occupation: n/a
    Comments:
    I used to work for Compaq as one of their leading Conflict Resolution people, and i'll tell you that i've had to deal with this same type of issue before.
    As someone that has had to endure internal bullshit like this, i think that if the people that bought the laptops at the agreed price should be able to pay what was on the site.
    Just between me and the rest of Australia, the site is maintained in the U.S, so Compaq here don't know what's going on most of the itme.

    I think that these people should be able to take advantage of the offer.

    Give Compaq hell! :)

    All I can Say is........ I wis ...feeling left out -- 09/05/02

    All I can Say is........
    I wish I knew about it.........

    QUOTE: TRADE PRACTICES ACT 197 ...Anonymous -- 09/05/02

    QUOTE:
    TRADE PRACTICES ACT 1974 SECT 85
    85 Defences
    (1)
    Subject to subsection (2), in a prosecution under this Part in relation to a contravention of a provision of Part V, it is a defence if the defendant establishes:

    (a)
    that the contravention in respect of which the proceeding was instituted was due to reasonable mistake; UNQUOTE

    Everyone, get real. If there is no intent, there is no contravention. A "reasonable mistake" is excused under the Act. The courts will determine what is "reasonable" but it shouldn't have to come to that. All it will do is line the pockets of the legal profession yet again.

    I think the person who put in ...Anonymous -- 09/05/02

    I think the person who put in the quote set the tone and I've checked it and he's right.

    My thoughts are this: Since it ...Anonymous -- 27/05/02

    My thoughts are this:

    Since it was so *obviously* a mistake, and I'm sure that Compaq and high-paid lawyers would have no problem proving that it was, no-one will recieve any 1c laptops.
    I'm quite sure that most of the "500+" that were ordered were people who obviously knew it was a mistake.
    I'm quite sure that I would've ordered as many as possible at the time had I known, in hopes that I'd get them, but reading this now, I woudln't expect you to win.

    Mr Cust appears to have let gr ...Anonymous -- 07/06/02

    Mr Cust appears to have let greed rule over common sense.

    if youd paid too much they wou ...Anonymous -- 02/12/04

    if youd paid too much they wouldnt give it back i say good luck to those who bought them stiff bikies if it was an error and so what if ant reasonable poerson might have seen that take them to court

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Suzanne Tindal Love me, tender
    Considering how expensive and drawn-out tender processes can be to solve problems that might be very immediate, it's little wonder that the Victorian Police IT department tried to work the tender exemptions system.
  • Array 2009 funding drought rolls on
    For Australian start-ups looking for venture capital, 2009 was a very bad year. 2010 may be no better.
  • Array Can not-so-smart meters help the NBN?
    It was interesting to witness Conroy's recent enthusiasm to spruik the NBN's role in supporting the Smart Grid, Smart City initiative. What a pity that Conroy hadn't yet seen the damning report from the Victorian auditor-general about that state's smart-meter roll-out.
  • More blogs »

Tags

Back to top

Featured