The Commerce Commission confirms that charges have been filed against Pak’nSave Silverdale in Auckland and Pak’nSave Mill Street in Hamilton over inaccurate pricing and misleading promotional specials.
“The Commerce Commission has today filed charges against Pak’nSave Silverdale and Pak’nSave Mill Street in the Auckland District Court for what it alleges were inaccurate pricing and misleading specials that may have breached the Fair Trading Act,” ComCom general manager of competition, Vanessa Horne, said.
In December last year, ComCom indicated its intention to file charges related to the said violations as part of a wider initiative to enforce compliance with the Fair Trading Act, which requires retailers to maintain transparent and accurate pricing practices.
Commerce Commission deputy chairwoman Anne Callinan said these 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.”
“Pricing accuracy is a consumer right and an expectation of a competitive market. The major supermarkets are large, well-resourced businesses that should invest the time and effort to get pricing and promotions right,” Callinan said.
“The charges we’re filing against major supermarket brands are to remind all supermarket operators that we expect them to fix ongoing pricing accuracy issues and implement better processes to prevent issues like these in the future.”
Woolworths NZ was also mentioned when ComCom signalled its intention to pursue charges against the two Foodstuffs North Island cooperative members.
The commission had not yet formally filed charges against Woolworths but is expected to do so.
A spokesperson for Foodstuffs North Island stated that the stores are treating the issue seriously and have fully cooperated with the Commerce Commission’s investigation.
“Foodstuffs North Island’s stores process millions of transactions a day, and while errors are relatively rare, we agree that any inaccurate pricing is unacceptable,” the spokesperson said.
“We work hard to ensure that the price customers see on shelf is always what they pay at the checkout and that all specials offer clear savings.”
Foodstuffs North Island encouraged consumers to either speak directly with in-store staff or contact their customer service team for assistance if they believe they have been charged an incorrect price.
Last year, Foodstuffs North Island was fined $3.25 million by the Wellington High Court for imposing anti-competitive land covenants aimed at blocking competition in the lower North Island; this fine was the largest of its kind.
The Commerce Commission described Foodstuffs North Island’s actions as “deliberate” and serious, emphasising the intent to obstruct competitors from establishing new stores or expanding existing ones in areas such as Wellington’s Newton and Petone, as well as south Napier’s Tamatea.