Incident: Walmart Website Glitch Causes Massive Price Discrepancies and Chaos

Published Date: 2013-11-07

Postmortem Analysis
Timeline 1. The software failure incident at Walmart, where a computer glitch caused massive under-pricing of items, happened on November 6, 2013. [Article 23055]
System 1. Walmart's website system [Article 23055]
Responsible Organization 1. Internal technical error at Walmart's website [23055]
Impacted Organization 1. Customers who made purchases during the glitch were impacted as Walmart refused to honor the sales made at the significantly reduced prices [23055]. 2. Walmart as a company was impacted by the software failure incident as they had to deal with the aftermath of the glitch, including issuing $10 gift certificates instead of fulfilling the orders made during the error [23055].
Software Causes 1. Internal technical error on Walmart's website caused prices on hundreds of items to be slashed without reason, leading to massive under-pricing [Article 23055]. 2. The glitch was not a result of a hack but was an internal problem within Walmart's online operations [Article 23055]. 3. The technical error caused some items to show incorrect pricing, resulting in incredible discounts on products like computer projectors and treadmills [Article 23055].
Non-software Causes 1. The failure incident at Walmart was caused by a massive technical glitch on the company's website, leading to incorrect pricing on hundreds of items [23055]. 2. Walmart experienced an internal technical error, not a hack, which resulted in the pricing discrepancies [23055].
Impacts 1. Customers were able to purchase high-value items at significantly reduced prices due to the glitch, such as $600 computer projectors for $8.85 and treadmills for $33 [Article 23055]. 2. Walmart decided not to honor the low prices resulting from the glitch and instead offered affected customers $10 e-gift certificates [Article 23055]. 3. The glitch caused products to sell out online within hours, leading to a shopping frenzy [Article 23055]. 4. Walmart experienced negative publicity and inconvenience to customers due to the technical error [Article 23055].
Preventions 1. Implementing thorough testing procedures: Conducting comprehensive testing, including regression testing, load testing, and stress testing, could have helped identify and rectify the pricing glitch before it went live [23055]. 2. Implementing proper error handling mechanisms: Having robust error handling mechanisms in place could have helped the system detect the pricing discrepancies and prevent them from being displayed to customers [23055]. 3. Regular code reviews and audits: Regularly reviewing and auditing the codebase could have potentially caught any issues related to pricing algorithms or data handling that led to the glitch [23055].
Fixes 1. Implement thorough testing procedures to catch pricing discrepancies before they go live on the website to prevent such glitches in the future [23055]. 2. Enhance monitoring systems to quickly detect and rectify technical errors like incorrect pricing to minimize the impact on customers [23055]. 3. Review and potentially revise the terms of use to provide clearer guidelines on how pricing errors will be handled in the future to avoid customer dissatisfaction [23055].
References 1. Walmart spokesperson [23055] 2. ABC News [23055]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident has happened again at Walmart. Just two weeks before this incident, Walmart stores in Louisiana experienced another frenzied shopping day after a computer glitch gave consumers unlimited funds on their government-issued credit cards, and the retailer had to foot the bill [23055]. (b) There is no information in the provided articles about the software failure incident happening again at other organizations.
Phase (Design/Operation) design, operation (a) The software failure incident at Walmart, where prices of items were massively under-priced due to a technical glitch on the website, can be attributed to the design phase of system development. The glitch causing the incorrect pricing was described as an internal technical error and not a hack, indicating that it was a result of system development issues rather than external factors like hacking [23055]. (b) Additionally, the incident can also be linked to the operation phase of the system. The failure was exacerbated by the operation of the website, as customers were able to place orders at the incorrect prices due to the glitch. The company had to deal with the aftermath of these orders and decide not to honor them, showing the impact of the operation of the system on the overall failure incident [23055].
Boundary (Internal/External) within_system (a) within_system: The software failure incident at Walmart, where prices on the website were massively under-priced due to a technical glitch, was caused by an internal technical error and not a hack [23055]. The Walmart spokesman clarified that it was an internal problem and not a hack that would have put customers' stored credit card information at risk. Additionally, Walmart mentioned that there is a clause in their terms of use that allows them to cancel sales due to inaccuracies or errors in product or pricing information, indicating that the failure originated from within the system.
Nature (Human/Non-human) non-human_actions (a) The software failure incident at Walmart, where prices on the website were massively under-priced due to a technical glitch, was caused by non-human actions. The glitch was described as an internal technical error and not a hack, indicating that the failure was due to contributing factors introduced without human participation [23055]. The company's spokesman emphasized that it was an internal problem and not a hack, and they experienced a technical error that caused incorrect pricing to be displayed on the website [23055]. (b) In this case, there is no specific information provided in the articles about the software failure incident being caused by human actions.
Dimension (Hardware/Software) software (a) The software failure incident reported in Article 23055 was not attributed to hardware issues. The incident was specifically mentioned to be caused by an internal technical error on Walmart's website, with a spokesman clarifying that it was not a hack but an internal problem [23055]. (b) The software failure incident in Article 23055 was clearly attributed to software issues. The glitch that occurred on Walmart's website causing prices to be massively under-priced was described as an internal technical error, not a hack. The company's spokesman emphasized that it was a technical error that led to incorrect pricing being displayed on the website [23055].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident at Walmart, where prices of items were massively under-priced due to a technical glitch on their website, was non-malicious. The incident was caused by an internal technical error and not a hack or malicious activity. A Walmart spokesman clarified that it was not a hack but an internal technical error, stating, "I want to make very clear this is not a hack. This is an internal technical error" [23055]. Additionally, the company mentioned that there is a clause in their terms of use that allows them to cancel sales due to inaccuracies or errors in product or pricing information, further indicating that the failure was non-malicious in nature [23055].
Intent (Poor/Accidental Decisions) accidental_decisions (a) The intent of the software failure incident was not due to poor decisions but rather an accidental technical glitch. The Walmart spokesman clarified that it was an internal technical error and not a hack, emphasizing that it was not a result of poor decisions [23055]. The incident was described as a massive technical glitch on the company's website that caused prices to be slashed without reason, leading to the incredible discounts advertised [23055].
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident at Walmart, where prices of items were massively under-priced due to a technical glitch on their website, can be attributed to development incompetence. The glitch was described as an internal technical error and not a hack, indicating that it was a mistake or oversight in the development or maintenance of the website [23055]. Additionally, the company's spokesperson mentioned that there is a clause in their terms of use that allows them to cancel sales due to inaccuracies or errors in product or pricing information, suggesting a lack of professional competence in ensuring accurate pricing information on the website [23055]. (b) The software failure incident at Walmart, resulting in the incorrect pricing of items on their website, can also be considered accidental. The glitch was described as a technical error that caused some items to show incorrect pricing, indicating that it was an unintentional issue rather than a deliberate action [23055]. The company's spokesperson emphasized that it was an internal problem and not a hack, further supporting the notion that the incident was accidental in nature [23055].
Duration temporary The software failure incident reported in Article 23055 was temporary. The incident was caused by an internal technical error on Walmart's website, leading to massive price discrepancies on various items. The glitch was fixed by 11 am on the same day, and the website was up and running again. Customers who took advantage of the incorrect prices were notified that their orders would not be fulfilled, and they were compensated with $10 e-gift certificates instead [23055].
Behaviour crash, value, other (a) crash: The software failure incident in the Walmart case can be categorized as a crash. The glitch on Walmart's website caused prices on hundreds of items to be slashed without reason, leading to customers being able to purchase items at significantly reduced prices. Despite many transactions going through online without a hitch, the company decided not to honor those orders, indicating a failure of the system to perform its intended functions correctly, resulting in a crash [23055]. (b) omission: There is no specific mention of the software failure incident in the Walmart case being related to omission. The issue primarily revolved around incorrect pricing due to a technical glitch, leading to customers being able to purchase items at heavily discounted prices [23055]. (c) timing: The software failure incident at Walmart does not align with a timing failure. The glitch did not involve the system performing its intended functions too late or too early; instead, it led to incorrect pricing that allowed customers to make purchases at significantly reduced prices [23055]. (d) value: The software failure incident at Walmart can be attributed to a value failure. The glitch caused the system to display incorrect pricing for various items, enabling customers to purchase products at prices significantly lower than their actual value. This incorrect behavior of the system in processing and displaying prices led to the failure in performing its intended functions correctly [23055]. (e) byzantine: The software failure incident at Walmart does not exhibit characteristics of a byzantine failure. There is no indication in the articles that the system behaved erroneously with inconsistent responses and interactions during the glitch that caused the pricing errors [23055]. (f) other: The behavior of the software failure incident at Walmart can be described as a pricing anomaly. The glitch resulted in a situation where customers were able to purchase high-value items at extremely low prices due to incorrect pricing displayed on the website. This anomaly led to a surge in online sales and created a frenzy among shoppers, ultimately requiring Walmart to address the issue and decide not to honor the erroneous transactions [23055].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property (d) property: People's material goods, money, or data was impacted due to the software failure - Walmart experienced a massive technical glitch on their website that caused prices on hundreds of items to be slashed without reason, allowing shoppers to buy expensive items at significantly reduced prices [23055]. - Customers who took advantage of the glitch and purchased items at extremely low prices were not honored by Walmart, and the company decided not to complete those orders [23055]. - Walmart stated that they would not be sending the TVs or digital projectors that were purchased at the incorrect prices, but instead, they would be sending a $10 e-gift certificate for the regularly-priced website [23055]. - The retailer had to foot the bill for another software glitch in their stores in Louisiana, where consumers were able to use unlimited funds on their government-issued credit cards due to a computer error [23055].
Domain sales (a) The failed system in the incident was related to the sales industry. The software glitch at Walmart's website caused prices on hundreds of items to be massively under-priced, leading to a surge in online sales and customers taking advantage of the pricing errors [Article 23055]. The incident involved online transactions, pricing errors, and sales operations within the retail sector.

Sources

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