Two Pak’nSave supermarkets – Silverdale and Mill St – have pleaded guilty to breaching the Fair Trading Act, following charges filed by the Commerce Commission in the Auckland District Court.
ComCom said the breaches involve the use of inaccurate pricing and misleading specials, practices that may have misled consumers and violated consumer rights.
Pak’nSave Silverdale admitted guilt to seven charges, while three additional charges were adjourned without a plea.
Meanwhile, Pak’nSave Mill St pleaded guilty to four charges, with another four charges being adjourned without a plea.
“As the case is before the court, the Commission is unable to comment further. We can, however, confirm that Pak’nSave Silverdale and Pak’nSave Mill St have both entered guilty pleas on some charges and were remanded without a plea until a further appearance on a number of other charges,” ComCom said.
Each offence has a maximum penalty of $600,000.
Consumer NZ chief executive Jon Duffy expressed satisfaction that the issue is gaining attention.
“The Fair Trading Act exists to protect shoppers from misleading and deceptive pricing and promotional practices, and it’s essential that companies, especially major brands like Pak’nSave, are held to account,” he said.
“Consumers deserve clear, honest information when making purchasing decisions.”
“Misleading pricing not only erodes trust, but it also unfairly disadvantages shoppers amidst an ongoing cost of living crisis.”
Duffy also called on all supermarkets and retailers to see this as a warning, stating, “Misleading promotions and systemic pricing are unacceptable.”
Duffy vowed to keep a close watch on the supermarket sector. He added that efforts are underway to address problems within supermarkets, noting that 66% of shoppers frequently encounter pricing errors.
“We will continue to monitor the sector closely … and advocate for greater transparency and fairness in supermarket pricing.”