Criminal charges have been filed against Woolworths New Zealand for allegedly misrepresenting pricing and specials, with the Commerce Commission citing potential violations of the Fair Trading Act. The charges were filed in December 2024, with additional ones in March, linked to in-store ticketing problems.
Commerce Commission Targets Pricing Practices
Woolworths NZ has been charged with breaches of the Fair Trading Act, potentially resulting in fines of up to $600,000. The allegations, which centre on misleading pricing and specials, are part of a wider effort to regulate supermarket chains, with similar charges filed against Pak’nSave Silverdale and Pak’nSave Mill St. Vanessa Horne.
Commerce Commission general manager for competition, fair trading, and credit, said, “The Commerce Commission has filed charges against Woolworths in the Auckland District Court for alleged inaccurate pricing and misleading specials that may have breached the Fair Trading Act.”
Details of the Allegations
According to the Commission, the charges are linked to discrepancies between advertised prices and the prices charged at the checkout. While specifics of the alleged breaches have not been disclosed, the focus is on in-store ticketing practices that may have caused confusion among consumers.
Woolworths NZ has been formally notified of the charges. The company’s interim managing director, Pieter de Wet, acknowledged the issue, highlighting the volume of transactions conducted across its stores each week. “We have over 3.5 million transactions in our stores each week, and sometimes errors do occur. When they do, we try to make things right, through our long-standing and market-leading refund policy,” he said.
Woolworths NZ’s Refund Policy
De Wet reiterated Woolworths NZ’s commitment to rectifying any errors through its refund policy, which offers consumers a full refund and the right to keep the product if they are overcharged. “Under that policy, if a customer is charged more than the advertised price for a product, they get a full refund and can keep the product,” he explained.
The company has not yet indicated whether it will contest the charges in court, but the allegations have the potential to impact both its financial position and reputation.
Conclusion
The case against Woolworths follows growing concerns over supermarket pricing practices in New Zealand, with the Commerce Commission taking a firm stance on enforcement.
Woolworths could face significant penalties and tighter regulatory oversight if convicted. The court will soon determine the next steps in the case, and the Commission continues its monitoring of the retail sector to safeguard consumer rights.