Consumer NZ receives 600 pricing complaints about supermarket specials during campaign

Tuesday, 11 July 2023

Consumer NZ is preparing a complaint for the Commerce Commission about supermarket specials.

Consumer NZ has received 600 pricing complaints in regard to supermarket specials in a nine-month campaign.

The watchdog asked for people's help to call out misleading prices as part of its campaign to clean up supermarket pricing.

The complaints included “specials”, which on closer inspection were not an opportunity to save, complaints of customers being charged more than shelf price and dodgy multibuys, in which the products would have been cheaper if purchased individually.

Gemma Rasmussen, head of research and advocacy at Consumer, said the watchdog was finalising its analysis before it lodged a complaint with the Commerce Commission.

“Our campaign has shown that promotions at the supermarket aren’t always as good as they seem, and that New Zealanders are, ultimately, struggling to discern good value for money.

Some of the ‘dodgy’ supermarket specials Consumer NZ have been sent.

“Supermarket pricing is a minefield.”

Its initial analysis suggested there were similar numbers of complaints about New World, Pak’nSave and Countdown.

“We look forward to the outcome of the Commerce Commission investigation into dodgy pricing and hope this will send a message to the major supermarkets that pricing accuracy is not 'optional,' and that they have a responsibility to invest in pricing technology that provides clear and accurate pricing information for their shoppers.”

It also hoped the appointment of Pierre van Heerden as New Zealand’s first Grocery Commissioner would help with pricing issues.

Commerce Commission general manager, fair trading, Kirsten Mannix, said it would assess information that Consumer NZ sent through in relation to supermarkets and alleged breaches of the Fair Trading Act.

“Every inquiry is valuable information to us – these are the insights that we need from New Zealanders to highlight potential issues for us to watch closely and help us prioritise resources.”

The Fair Trading Act prohibits false and misleading behaviour by businesses in the promotion and sale of goods and services.

“Pricing errors, no matter how small, add up and can financially impact consumers.

”Any representations businesses make in relation to prices need to be clear, accurate and unambiguous. Businesses should also think about the overall impression that consumers might take away from a pricing claim (such as a promotion), and whether it differs from what they’re actually offering.”

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

Only the courts could determine whether there had been a breach.