Unit pricing guidelines for grocery retailers have been released by the Commerce Commission. The guide has been designed to help retailers understand the unit pricing obligations for regulated grocery products under the Consumer Information Standards Regulations 2023.
In 2022, the Commerce Commission's market study into the grocery sector found that more competition was needed for all New Zealanders to benefit from better prices, more choices, and more convenient shopping. The Government’s response to the recommendations of the Market Study included the development of the Grocery Industry Competition Act, which has made the Commission the regulator of the grocery sector.
Unit pricing regulations came into effect on the 31st of August 2023, and require certain grocery retailers to display the unit price for goods clearly and legibly, at no less than 25 percent the size of the marked price. This applies to in-store, online, and advertised prices. The Commerce Commission has issued a reminder to the industry that physical stores must comply with the guidelines by 31 August 2024, and online stores must comply by 31 August 2025 at the latest. It has also encouraged grocery retailers to carefully consider the guidelines and seek legal advice if it is required.
The unit pricing guidelines apply to any grocery retailer who has an internal floor space of over 1,000sqm. Physical or online stores that sell bread, dairy products, eggs or egg products, fruit, vegetables, meat, fish, rice, sugar, or manufacturer-packaged foods must comply with the regulations as well.
Unit pricing has aimed to help consumers make better-informed purchasing decisions. It can help consumers more easily compare the prices of all types of different grocery products, especially where products are sold in different-sized packaging, unpackaged, and by different brands. It shows the prices of products in terms of the same unit of measurement.
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