Refund for a Pre-Order

dmcneice on 30/11/2015 - 15:49

Hi OzBargain, I hope someone can provide me with some guidance on a very frustrating matter which began 3 months ago with an Australian Online Store (which also run a brick and mortar store)

I pre-ordered 2 copies of an item at 50% deposit at $60 each = $120 (so $120 is owing).

Due to a long battle with another item I ordered at the same time (an in stock item which to this day I have never received, either the item or a refund), I requested a refund for my pre-order as well. The reason I did this was because I didn't trust them, and didn't want to give any more money after I hadn't received my first item/refund yet.

At the time of ordering, there was no policies or disclaimers stating that pre-orders were non refundable, in fact there was a policy stating anything could be returned provided it was unopened. I emailed for a refund and was told it would be processed within 3-5 days. I gave them 10 days and emailed again. They said as it was a pre-order, they had to wait for the funds from their supplier, and that it had been processed on their end and I would receive it in a few days. Another 10 days go by (after which the item had been released) to which I ask again, to be told now they have new management and do not give refunds on pre-orders.

Just trying to get what I ordered, I said fine, I will pay the remaining $120 and get my 2 items. They agreed. I planned to pick it up tomorrow, but they advised me today that they have increased the price from $120 to $180, and the remainder was now $240. They said my options are now to pay the difference, or forfeit my deposit.

In the last few days they have also added a refund policy on their website which specifically mentions pre-orders, stating they are non-refundable and the price may change at any time at their discretion (which was definitely not present when ordering).

Is this actually legal? I contacted the Department of Fair Trading who advised me that they didn't have the power to make them do anything, and that my only real option was to take him to small claims court (which is almost $100 anyway).

Thanks

Financial

Comments

spackbace on 30/11/2015 - 15:56

+2

Bit hard to work out refund policies without knowing the store involved
ESEMCE on 30/11/2015 - 16:08

+5

Not legal, it's a textbook bait and switch.
Provided you have documentation of the original price as being $240 total it's an open and shut case.
They must supply the goods at $240 total or refund your deposit in full.
bluesky on 30/11/2015 - 16:14

Perhaps you should name the store (but mention to them that you are canvassing opinion on widely read site as you feel their approach is unfair). If they care about upholding a good reputation, they may work something out which is acceptable to you (like returning your deposit).
dmcneice on 30/11/2015 - 16:30

I don't want to name them for fear of retribution from them. My invoice states the item - 50% security deposit, quantity 2, price $120
- bluesky on 30/11/2015 - 16:34
  
  +1
  
  Well, your case is clear-cut then. They should honour the original price, or at least return your deposit. You did not enter a contract with the higher price.
  - dmcneice on 30/11/2015 - 16:36
    
    They won't do either (which I would be happy with either). My options according to them
    
    1) pay the new difference
    2) get store credit
    3) forfeit my deposit
    - bluesky on 30/11/2015 - 16:49
      
      +1
      
      Tell them none of these options are acceptable to you, and you just want your deposit back. Insist on it.
    - dmcneice on 30/11/2015 - 17:04
      
      I've tried (many times). They are defiant to the point where they refuse to budge, no matter what. I just wanted to make sure what they were doing wasn't legal
    - bluesky on 30/11/2015 - 17:31
      
      I am no lawyer, but it definitely sounds illegal. You still have a few options:
      
      Do they have a facebook page etc, maybe raise it there?
      
      Since they did not give you any acceptable choices, maybe give them the incentive to settle it, so you won't have to name them in the context of this case in social media?
      
      Go down the small tribunal claims route.
      
      Or a combination of these.
      
      Haven't looked into it before, and guess I am naive. Why does Dept of Fair Trading not have power to uphold fair trading?
    - pinchies on 30/11/2015 - 18:18
      
      +2
      
      @dmcneice:
      Not a lawyer either, but it seems pretty crystal clear.
      
      You are in a contract with them. They agreed to supply goods at a price. They are just as bound to supply them at that price as you are bound to buy it. If they want to change the price, that voids the original contract and they need to refund you first, before a new contract can be negotiated.
    - ESEMCE on 01/12/2015 - 08:08
      
      Your next step is to inform them that unless it can be resolved to your satisfaction, you will be taking legal action.
      If it's as open and shut a case as it appears, you ought to be able to present yourself.
whooah1979 on 30/11/2015 - 18:27

new management

Can you please find out if this company change owners?
- dmcneice on 30/11/2015 - 18:31
  
  While their business name is under the same person… The old owner insists he is just a worker now…
  - whooah1979 on 30/11/2015 - 18:40
    
    If this company has been sold to a new owner after your purchase. Then it will be difficult to force the new owner to honour your sales contact. You may need to take the old owner to court.
    - dmcneice on 30/11/2015 - 19:13
      
      The business is still under the old owners name
    - ESEMCE on 01/12/2015 - 08:06
      
      Bullcrap, the contract is with the business, not the owner of the business.
  - bluesky on 30/11/2015 - 19:17
    
    Suspicious, might be illegal phoenix activity
    
    Edit: In my earlier comments, I completely missed the part about the "new management".

Refund for a Pre-Order

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