After money has changed hands, here in Ontario at least, it is a violation of the consumer Protection Act to withhold the goods and renegotiate the price and a company is legally liable up to $250,000 for each infraction in punitive damages.
If they take your money and don't have the item, they have to refund you or provide a like product at the same or discounted price, cannot be more than 10% more than the listed price or it violates another subsection of the law for price estimates. Or they're back into the above and $250,000 in punitive damages.
If they don't take your money, they're open for a suit for advertising the product and not providing it at the listed price. At this point it is merely on the judges discretion, and doesn't fall under the CPA. However, considering every product was capped at $50 and no one noticed, they would really be up shit creek without a paddle. It's a gross mistake and they made no attempt to reconcile the error (you know by shutting down the site) until 6am because they made no effort to check their pricing accuracy.
Like I said, they'd be open to a $1.6m lawsuit + the cost of legal fees and considering they obviously made no effort to check their prices, I don't see how they would have a defence. This isn't one little item that slipped through the net, it's the whole fucking store including the vinyl floor tiles!
There's no guarantee they would have to pay, it would be entirely up to a judge, but considering they obviously have no practices or policies in place to ensure these things are caught means they'd have no defence in court saying 'it was a mistake' because it wasn't, it was a complete lack of a price accuracy policy.
