People involved in a month-long dispute with Kodak will receive digital cameras at a knock down price following a mistake on the company's website.

The Kodak EasyShare DX3700 digital camera was offered on the company's website for �100 for a short period at the beginning of the year.

As consumers rushed to buy the cheap camera, Kodak claimed the price was a mistake and should have been �329.

Several hundred consumers were believed to be affected and had been threatening legal action against Kodak unless their contracts were honoured.

Kodak has now bowed to the pressure, saying the orders will be processed immediately.

Automated response

"We regret any inconvenience caused by these exceptional circumstances and we appreciate our customers' continued patience in allowing this matter to be resolved," read a statement.

Mistakes of this kind have happened before. Three years ago, Argos mistakenly offered television sets for �3 rather than �299.

Robin Bynoe, a lawyer with City of London law firm Charles Russell, believes e-commerce sites will be careful with their small print in future.

"It looks like in Kodak's case, an automated response was sent to customers and this constituted an acceptance of their �100 offer," he said.

"In future, companies with any sense will have wording in the small print which would allow them to cancel an order and they will not have an automated response that could screw that up," he added.