Economic Growth Minister Nicola Willis has issued a stern warning to the country’s major supermarket chains, demanding they meet their legal obligations under the Fair Trading Act and stop misleading consumers with inaccurate or deceptive pricing.
In a letter to Foodstuffs North Island, Foodstuffs South Island, and Woolworths, Willis expressed disappointment that she had to remind the nation’s largest retailers of their basic responsibilities, including accurate pricing, clear refund policies, and effective staff training.
Her comments follow concerns raised by the Commerce Commission and Consumer NZ about persistent promotional and pricing discrepancies. Reported issues include customers being charged more at checkout than advertised, false specials, and multibuy deals that cost more than buying items separately. This week, two PAK’nSAVE stores pleaded guilty to multiple Fair Trading Act breaches, while Woolworths is facing legal action over pricing misrepresentation.
Willis has requested updates from the chains on how they are addressing these concerns and said she is considering stronger enforcement tools and stiffer penalties. She noted the contrast between New Zealand’s $600,000 maximum penalty and Australia’s significantly higher $A50 million cap, suggesting tougher consequences may be needed to ensure compliance.
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This happens all the time. We purchase an item marked at $9.99 and at the check out it was $15.99!!! I don’t trust supermarkets and use local markets, whenever its practicable.
I suspect this response is off the back of action being taken in Australia, which is far more active than NZ, on these kinds of issues.
Groceries are generally cheaper there too, which to be fair is down to a more equitable, GST framework.