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The proprietor has apologized more than twice in the emails.I do not think it is fair for the HBS professor to take such drastic measures because a hapless businessman did not understand enough HTML to update a website frequently.

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The proprietor also had the opportunity to credit back the customer's money twice - having the wrong advertised prices on a menu is the proprietor's mistake. In the first response, the owner should have offered to credit back the $4 not just send an updated menu. This likely would have diffused the whole situation. And then on the second reply when asked for $12 he shouldn't have just offered $3 (not even the full amount). It's an antipattern for running a small business to not honor a lower price if an employee (or website) misquoted a lower price than is usual. And in most jurisdictions it is also illegal.

Why do hapless businessmen disproportionately make such errors in their own favor?

How often does a store accidentally undercharge?

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