Lawsuit Claims Buy.com Fraud in Web Pricing

A group of irate customers filed a lawsuit against Aliso Viejo-based Buy.com Inc. claiming that the online retailer makes a practice of intentionally pricing items incorrectly on its Web site.

The lawsuit, which seeks class-action status, accused Buy.com of fraud, breach of contract and negligent misrepresentation. It said that the company would charge customers’ credit cards but then delay issuing refunds when the products were not delivered.

Neither company officials nor the plaintiffs could be reached for comment.

The lawsuit asked for unspecified damages and an injunction preventing Buy.com from offering any item for sale unless the company first verifies that the product is ready for delivery.

Last month, the company posted on its Web site a computer monitor for $164.50, one that it normally sells for $588.

Word spread quickly on Usenet newsgroups about the deal, and in two days the company was flooded with nearly 1,600 orders for the monitor. But the company later said it had been a pricing error and that it would honor the sale price for the 143 monitors it had in stock. It canceled all the other orders.

The cancellation caused a fury among customers, who claimed there have been similar incidents.