Updated: 08/2 17: 15 NZDT
The Commerce Commission has filed 45 charges in Auckland District Court against Bunnings (NZ) Limited, alleging it misled consumers by advertising the prices of its goods as being the lowest in the market.
Bunnings’ advertising at its stores nationwide along with advertising campaigns on television, radio, online, and in newspapers and catalogues gave an overall impression that it offered the lowest prices for its products, when this was not true, alleges the regulatory body. The commission’s investigation focused on the period between July 2014 to February 2016.
Bunnings is one of New Zealand’s largest retailers, selling home improvement, outdoor living and general merchandise products. It has 46 retail stores nationwide, all of which it owns and operates. It employs 3,700 staff and stores stock on average 46,000 product lines.
In a statement to Inside Retail, Jacqui Coombes, general manager Bunnings NZ said the hardware chain was disappointed by the Commission’s decision to file charges against its lowest prices advertising campaign.
“We disagree with the Commerce Commission’s view of our lowest prices policy and will defend our highly competitive price guarantee,” she said.
“We would like to reassure customers that we will continue our lowest prices policy along with our comprehensive business processes and procedures operating behind the scenes to back this up.”
Coombes said Bunnings remains “absolutely committed to creating more value for New Zealand consumers and believe in the right of all businesses to compete on price”.
