Consumer NZ calling for supermarkets to stop 'dodgy' specials

Wednesday, 21 September 2022

Consumer NZ wants supermarkets to be more transparent about specials.

Consumer NZ is asking New Zealanders for examples of unclear or misleading supermarket pricing and promotions, so it can hold the grocery giants to account.

Chief executive Jon Duffy said whether it was a multi-buy that worked out to be the same price whether you bought one or five items, a product advertised “on special” at its regular price, or something advertised as being on special but billed at the regular price, it should be reported.

It comes after a special discounted price for feta cheese in an Auckland Countdown was more expensive than the normal price.

The Bouton d'Or Feta was “on special” for $4.90 but the normal price was $4.80, which Countdown apologised for and said was a ticketing issue.

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* The grocery staple that never goes on special

The Government is creating the role of grocery commissioner in an attempt to better regulate supermarket rivals Countdown and Foodstuffs. (Video first published on July 7, 2022)

During the grocery sector market study, Consumer NZ called for new rules to stop retailers from using confusing pricing and promotional strategies that made it difficult for consumers to figure out what they were getting for their money.

Instead, the Commerce Commission recommended supermarkets take responsibility to ensure their pricing and promotional practises were simple and easy to understand.

“But we are not convinced the supermarkets will change their ways without pressure from consumers,” Duffy said.

“Retailers know shoppers are more likely to buy a product if it’s on special – this leaves consumers vulnerable if specials are not genuine. We have seen plenty of examples through complaints we receive.”

Twelve of the commission’s recommendations for the grocery sector are now under way or complete.

However, as people were increasingly struggling with the cost of living, it was more important than ever that supermarket pricing was accurate and transparent, and that consumers were not being misled, Duffy said.

Consumer’s Sentiment Tracker found New Zealanders’ concerns about the cost of living had risen sharply over the past year, with food prices a key component. The cost of food now ranks second-highest on a list of financial concerns, behind housing payments. Last year, food ranked as the eighth-highest concern, trailing other household outgoings.

Statistics NZ’s latest Food Price Index showed food prices in August were up 8.3% compared with a year earlier. It was the biggest increase since 2009.

“It’s crucial that supermarkets are honest with their pricing, so consumers can confidently compare prices and trust they are getting a genuinely good deal when they purchase something on special.

“We will continue to keep a close eye on the sector and encourage consumers to let us know when they see concerning behaviour by the supermarkets.”