Countdown specials advertised online found not to match actual prices

Tuesday, 17 January 2023

Countdown says it performs weekly checks on its checkout scales to make sure they are working as they should.

Nationwide supermarket chain Countdown has admitted that the specials advertised on its website are in some cases substantially lower than those actually on offer both in-store and online.

At least over a three-week period it was found that the specials advertised on the slider on Countdown’s website, which displays new specials and deals each week, were incorrect.

There were strawberries advertised on the website banner and in an email to customers for $2.90 a punnet but they were $3.60 in the fruit and veg section in stores and online.

Then, there was fresh corn advertised for $1, but the price was $1.85. The iceberg lettuce were said to be $3 a head on the slider, when actually they were on sale for $3.60.

The price discrepancies between what was advertised on the promotional banner and the actual retail price were in some cases up to $5 difference. A wide range of goods was affected.

Scan & Go works by allowing a shopper to scan the barcode of items using the Countdown app and pack the goods into a shopping bag as they go. Shoppers pass through a dedicated unmanned checkout, prompting an electronic payment to be made.

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Cleaning products were also caught up in the price confusion, with dishwasher tablets advertised for $15 a pack, when in reality these were being sold for $20 a box.

When approached by Stuff over the price discrepancies, Countdown said it was the result of “an error in our system” in relation to the online banner advertising.

The incorrect prices were displayed on the website for a week at a time in some cases, dating back to December 5 and through to January 13.

A spokeswoman for the chain that operates 196 stores up and down the country said the pricing errors had affected “a limited number of products”.

“In all instances, the price shown on our online shopping site and our in-store ticketing was correct. It was only the banner advertising on our website that was incorrect.”

But the price at the checkout was actually 85 cents more.

The Commerce Commission had been alerted to the pricing and had passed this on to be assessed.

These same products were $5 dearer at the checkout.

Countdown promoted Finish and Vanish products for $15 one week.

Countdown gave various reasons for why some of the prices differed, including some prices failing to be changed when the prices rose during the week to some prices only being relevant to North Island stores.

“While we don’t know how many people saw the online banners, we can tell from our sales information on those products in this period, that the potential number of customers impacted by this is limited.

“We apologise for this mistake and any confusion that this has caused.”

Countdown said any customer that had purchased the products without realising the price was incorrect could contact its customer care team for a refund of the difference.

Commerce Commission general manager of fair trading Vanessa Horne said it was important businesses made pricing claims accurate and genuine otherwise they risked breaching the Fair Trading Act and could face prosecution and being slapped with a fine.

Kennedy’s Foodcentre (2003) Limited, trading as Pak'nSave Mangere, was fined $78,000 in 2020 for discrepancies between the promotional price displayed or advertised and the price charged at the till.

Bag retailer Strandbags was fined $780,000 in November last year for misleading discounting practices, and other fines for similar fair trading breaches have been handed out to 1-Day Deals and Occasion Box.

“While businesses can set their own prices for products and services, it is important that they make sure the pricing claims are clear, accurate and genuine. When advertising a price, whether that be advertised in store or online, businesses should think about the overall impression that consumers might take away from the claim and whether it differs from what they’re actually offering,” Horne said.

“If the overall impression given by an advertisement is misleading, it will breach the Fair Trading Act no matter what information is provided in fine print.

“It is important that businesses check their pricing and promotions carefully, particularly for specials, so that they are accurate and reflect what the consumer will actually pay.”

Horne encouraged consumers to make a complaint to the Commerce Commission if they believed a business had breached the Fair Trading Act.

Pricing, discounting and promotional practices are an area of focus for the consumer watchdog.