Two Pak’nSave supermarkets in Hamilton and Auckland are awaiting their penalties after pleading guilty to making false and misleading discount claims.

In March last year, the Commerce Commission filed proceedings against Pak’nSave Silverdale and Pak’nSave Mill St over alleged breaches of the Fair Trading Act. 

The regulator said the two supermarkets had used inaccurate pricing that did not match what they were charging at the point-of-sale, as well as misleading specials or discounts.

The supermarkets pleaded guilty to the breaches in June. The case was heard in the Auckland District Court last week, but the final decision on penalties has yet to be made.

The maximum penalty for breaches of the Fair Trading Act is $600,000 for a business, per offence. 

According to the NZ Herald, Commerce Commission prosecutor Nick Flanagan was pushing for “significant” penalties, arguing that the supermarkets could be incentivised to take risks if the actions are not strong enough.

Flanagan mentioned an earlier case where another Pak’nSave supermarket in Māngere was fined $78,000 for similar breaches in 2020.

He said the fine imposed on the two latest stores needed to “substantially increase” from this figure. The prosecutor is seeking a penalty starting point of $160,000, but accepted that the operators should get a 25 per cent discount for pleading guilty.

The judge has reserved her decision on the sentencing until at least mid-June.  

• Further reading: Woolworths warned by Commerce Commission for alleged code breach.