Two Pak’nSave supermarkets have been fined a combined NZD 580,500 in the Auckland District Court after pleading guilty to inaccurate pricing that breached the Fair Trading Act.
Commerce Commission Deputy Chair Anne Callinan said the Commission has long put major supermarkets on notice that they have a fundamental responsibility to ensure the ticket price on the shelf matches the price at the till.
Despite this, Auckland’s Pak’nSave Silverdale and Pak’nSave Mill Street in Hamilton have now been criminally convicted for repeated pricing errors that misled customers.
“The Commission will not hesitate to prosecute other supermarkets if we believe there is wrongdoing. Consumers are entitled to rely on accurate pricing; that is the bottom line,” she said.
“These are highly profitable stores who should be investing in pricing systems that ensure these errors that mislead consumers do not happen.”
Pak’nSave Silverdale was fined NZD 234,000 for ten charges, and Pak’nSave Mill Street was fined NZD 346,500 for eight charges.
The Commission is awaiting receipt of the full written judgment. This will be made available on the case register in due course.
Callinan said the Commission was satisfied with the penalty secured under the current legislation, but this case highlighted the necessity of the Government’s current review of the Fair Trading Act.
“Increasing the penalties and changing to a civil regime as proposed will give us the option to push for fines of up to NZD 5 million for each breach, compared to our current maximum of NZD 600,000,” added Callinan.
“Fines in this range would have a much stronger deterrent effect and encourage genuine behaviour change. The proposed changes to the Fair Trading Act will support fairer outcomes for consumers and level the playing field for businesses following the rules."
The Commission’s case against Woolworths New Zealand for similar conduct is ongoing. Woolworths has pleaded not guilty.
The Commission continues to focus on grocery-sector breaches, with several ongoing matters involving the country’s major supermarkets.
In addition to ongoing investigations, the Commission is currently pursuing proceedings against Foodstuffs North Island and Gilmours over alleged cartel conduct.
Separately, in August, the Commission announced civil proceedings against Foodstuffs South Island for allegedly implementing and enforcing a restriction on independently owned Pak’nSaves discounting selected products.
“We will continue to act within our current remit to hold the major supermarkets to account on behalf of Kiwis.”
More local FMCG news here
