Consumer alleges Fair Trading breaches by grocery duopoly

(Source: Bigstock)

Consumer NZ has requested the Commerce Commission to inspect Woolworths and Foodstuffs stores, alleging their pricing and promotional practices have breached the Fair Trading Act.

Along with the request, Consumer also provided some 80 examples of unclear or misleading pricing and promotions it had gathered during June.

The watchdog previously asked local residents to send in such examples as part of its campaign to “end dodgy specials” at supermarkets, which started in September 2022.

“We found that dodgy multi-buys were most common at Foodstuffs stores, and specials that were more expensive than the original price were most common at Woolworths stores,” said Gemma Rasmussen, head of research and advocacy at Consumer NZ.

Many shoppers reported specials often fail to display the regular price, making it impossible to evaluate the true value of a discount, Rasmussen elaborated.

They were also frustrated by incorrect unit prices, and products displaying no prices at all, she said.

Consumer’s campaign also found that New Zealanders seem to be increasingly suspicious of supermarkets.

“It is because the cost of food is rising that shoppers must be able to trust the prices they see on the shelves. We’re simply asking the supermarkets to do the bare minimum and ensure they’re complying with the Fair Trading Act,” Rasmussen said.

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