Two Pak’nSave supermarkets have been fined a combined $580,500 for inaccurate pricing that misled consumers.
Pak’nSave Silverdale was fined $234,000, and Pak’nSave Mill Street was fined $346,500 after pleading guilty to the charges. This came after the Commerce Commission launched proceedings against them.
The Commission alleged that, between October 2022 and September 2024, Pak’nSave Silverdale advertised prices for grocery products that did not match the price charged at the point-of-sale and promoted grocery products at a special or discounted price where the promotional price did not offer a genuine ‘special’.
Pak’nSave Mill Street committed similar practices between September 2021 and August 2024.
“The Commerce Commission has long put major supermarkets on notice about meeting their fundamental responsibility as businesses to ensure the ticket price on the shelf matches the price at the till,” said Commerce Commission deputy chair Anne Callinan.
“Consumers are entitled to rely on accurate pricing; that is the bottom line. These are highly profitable stores that should be investing in pricing systems that ensure these errors that mislead consumers do not happen.”
Callinan added that these cases highlight the necessity of the Government’s current review of the Fair Trading Act.
“Increasing the penalties and changing to a civil regime as proposed will give us the option to push for fines of up to $5 million for each breach, compared to our current maximum of $600,000.
“The proposed changes will support fairer outcomes for consumers and level the playing field for businesses following the rules,” she said.
The ComCom is pursuing a similar case against Woolworths NZ, which has pled not guilty.
In addition to ongoing investigations, the Commission has current proceedings against Foodstuffs North Island and Gilmours over alleged cartel conduct.