Pak‘nSave supermarkets admit breaching Fair Trading Act with misleading prices, face millions in fines
Two major supermarket operators could face millions of dollars in penalties after admitting Fair Trading Act breaches by misleading shoppers.
In March, the Commerce Commission filed criminal charges against two North Island Pak'nSave supermarkets over potential fair trading offences.
The commission alleged Pak'nSave Silverdale in Auckland and Pak'nSave Mill St
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Two Pak'nSave supermarkets have pleaded guilty to breaching the Fair Trading Act. The Commerce Commission said it filed charges against Pak'nSave Silverdale and Pak'nSave Mill St in the Auckland District Court. It said the stores used inaccurate pricing and misleading specials that might have breached the Fair Trading Act. Pak'nSave Silverdale entered guilty pleas on seven charges and was remanded without plea on three further charges. Pak'nSave Mill St entered guilty pleas on four charges and was remanded without plea on four further charges. ADVERTISEMENT The maximum penalty for breaches of the Fair Trading Act is $600,000 for a business, per offence. The Commerce Commission said it could not comment further while the case was before the courts. Consumer NZ chief executive Jon Duffy said he was pleased to see the issue getting traction. "Consumers deserve clear, honest information when making purchasing decisions. Misleading pricing not only erodes trust, but it also unfairly disadvantages shoppers amidst an ongoing cost of living crisis," he said. "We urge all supermarkets and retailers to take this as a wake-up call: Misleading promotions and systemic pricing are unacceptable." Duffy said Consumer NZ would continue to monitor the supermarket sector closely. He said work was being done to "sort out supermarkets" as two-thirds of shoppers reported regularly noticing pricing errors. "We understand that more investigations are underway, and we really hope to see meaningful action as a result of our complaint and the commission's work." ADVERTISEMENT
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