The Commerce Commission is set to file separate criminal charges against Woolworths NZ, Pak’nSave Silverdale, and Pak’nSave Mill Street for alleged violations related to inaccurate pricing and misleading promotional specials.
This action comes as part of a broader effort to ensure compliance with the Fair Trading Act, which mandates clear and truthful pricing practices in retail.
“Supermarkets have long been on notice about the importance of accurate and clear pricing and specials, and we’re not satisfied with the continuing issues we’re seeing across the industry,” deputy chair Anne Callinan said in a statement.
She highlighted that accurate pricing is not only a consumer right but also a fundamental expectation in a competitive marketplace.
“The major supermarkets are large, well-resourced businesses that should invest the time and effort to get pricing and promotions right.”
Callinan stated that these charges serve as a reminder to all supermarket operators about the need to address ongoing pricing accuracy issues and implement improved processes.
Aside from these three supermarkets, ComCom said it is also conducting ongoing investigations into other supermarket operators to ensure compliance with the Fair Trading Act.
In response to the charges, a spokesperson for Foodstuffs North Island, which operates the Pak’nSave supermarkets, stated that while pricing errors are infrequent, the company acknowledges that any inaccuracies are unacceptable. Foodstuffs also confirmed its full cooperation with the Commerce Commission during the investigations.
Foodstuffs North Island has advised that if customers believe they have been charged the incorrect price, they should either speak to the team in-store or reach out to customer service for assistance.
Woolworths stated that it is crucial for customers to trust the prices displayed at their supermarkets, although it acknowledged that errors can occasionally happen. Managing director Spencer Sonn mentioned that if customers are charged more for a product than what was advertised, they are eligible for a refund.
To minimise errors, Woolworths has introduced electronic shelf labels in 130 of its 186 stores across New Zealand. The company also noted that it has been cooperating with the Commerce Commission’s pricing investigation for some time and plans to review the proceedings once they are officially filed.