That online bargain - too good to be true?

Online bargain hunters thought they were in for the deal of the year last week when they came across DVD players advertised for £6.99 on Webelectrical.co.uk.

With the Sony player in question usually retailing at about £279 it is not surprising they were snapped up like proverbial hotcakes.

Webelectrical dispatched order confirmation emails on Saturday, even to the customer who ordered 20 machines obviously hoping to capitalise on his stroke of good luck.

However, if a deal appears too good to be true, it's because it usually is. The e-tailer eventually realised its pricing mistake, attributed it to 'human error' and retracted the purchase agreements.

Despite the company's promise to offer "the best deals with no complications or hidden extras" and "the price you see is the price you pay" customers aren't getting anything - not even if they cough up full whack for the DVD players because they sold out last Friday.

Webelectrical is standing its ground. According to trading law an advertised price is not an obligation to sell at that price but an invitation to treat - for the customer to make an offer to purchase at that price. The retailer does not have to accept the offer, although of course they usually do.

In a traditional retail environment the purchase agreement is clear cut. The customer hands over the cash, the retailer hands over the goods and the receipt, and it's a done deal.

Online the boundaries become blurred. Is a transaction complete when a user enters his credit card details and clicks OK - the equivalent of handing over a credit card at a store counter? Does an email order confirmation count as a purchase contract? Or is the transaction only validated when goods are delivered?

It's a situation that neither Webelectrical nor its customers agree on. Webelectrical claims it has taken legal advice and consulted the Consumers' Association, and that traditional retail laws apply.

Not surprisingly Webelectrical customers claim email confirmation plus the company's slogan should be legally binding.

Webelectrical is not the first dot-com to tread the murky legality of online consumer rights. In January Kodak made a similar pricing error, though it eventually honoured orders at the discounted price.

Dabs.com also reached an amicable agreement with customers when it made a pricing error. In 1999, when Argos mistakenly priced TV sets on its website at £3 and then refused to process the sales it was taken to court.

But no precedent has been set - the best guideline still seems to be: if it sounds too good to be true it probably is.