Retailers have been warned by the Commerce Commission to ensure discounts they promote ahead of this year’s Black Friday and year-end season sales provide genuine savings, as required under the Fair Trading Act.  

“Price promotions are common at this time of year,” said Anna Rawlings, commission chair. “Prices should not be increased before a sale to immediately claim a bigger discount at sale time.” 

Rawlings also reminded retailers to monitor stock levels and update their website in order not to promote products that are no longer available. In a case where a retailer sells products it cannot provide, it must refund affected customers within a reasonable timeframe. 

“A ‘sale’ should provide a limited opportunity to buy at a genuinely reduced price and should not continue for prolonged periods of time offering the same price,” Rawlings added. “Fine print should not be used to hide important information or change the meaning of a headline offer.”

Pricing is one of the most complained about areas, amounting to more than 15 per cent of Fair Trading complaints the commission receives each year.

In October last year, Pak’nSave Mangere was fined $78,000 for discrepancies between the advertised price of goods on its shelves and those charged at the checkout. Earlier this year, the commission filed charges against Strandbags after the retailer’s representations about significantly discounted or special prices were found liable to mislead the public. 

The commission has also warned retailers to make accurate representations about delivery timeframes – and be able to back these up. Last year, Noel Leeming was warned for making delivery promises without reasonable grounds during the Covid-19 lockdown.

The reminder comes as part of the commission’s annual reminder to retailers and consumers. A short summary of the Commerce Commission’s tips for retailers:

• Don’t use fine print to hide important information.
• Ensure discounts are taken off the usual selling price rather than any original price.
• Price comparisons must involve ‘like-for-like’ products or services.
• A sale is a brief limited opportunity to buy goods at reduced prices.
• ‘Clearance’ sales can only be used for clearing goods. Products on clearance should not return to full price.
• ‘Special offer’ or ‘special’ means something unusual.
• Make sure shelf prices, or prices advertised, match checkout prices.
• Do not exaggerate savings to be made or the range of goods available at a discounted price – if you can’t back it up, don’t say it.