The deputy chair said supermarkets have been repeatedly warned about the need for clear pricing
The Commerce Commission has announced its intention to file criminal charges against Woolworths NZ, Pak’nSave Silverdale, and Pak’nSave Mill Street, alleging breaches of the Fair Trading Act related to inaccurate pricing and misleading promotions.
Commerce Commission deputy chair Anne Callinan emphasised the importance of pricing transparency in the grocery sector. “Shoppers should have confidence that the price they see will be the price they pay, and specials really are special,” Callinan stated.
In a statement, Callinan noted that supermarkets have been repeatedly warned about the need for accurate and clear pricing. “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 added.
The charges come amidst ongoing scrutiny of the grocery industry, which has faced criticism for practices that potentially disadvantage consumers. Since the commission’s 2022 market study into grocery practices, there has been a heightened focus on pricing integrity. According to Callinan, these charges serve as a warning to all supermarket operators to address persistent pricing issues and improve their internal processes.
The charges will be filed separately against Woolworths NZ and the Pak’nSave stores in Silverdale and Mill Street. Additional investigations into supermarket operators remain underway.
Grocery Commissioner Pierre van Heerden highlighted the commission’s efforts to increase transparency and accountability in the sector. A mandatory disclosure standard under the Grocery Industry Competition Act is being developed to require supermarkets to report customer complaints regularly, including those related to pricing and promotional issues.
“The major supermarkets don’t have consistent processes for recording customer complaints – the lack of clarity and reporting means supermarkets can’t identify potential compliance issues within their businesses. This impacts consumers as their complaints may not be being dealt with effectively, which we would expect in a competitive market,” Commissioner van Heerden said.
The draft disclosure standard is expected to be released in the new year. Its goal is to improve the identification and resolution of compliance issues. The commission has reiterated its commitment to protecting consumer rights and ensuring fair competition in the grocery market.
