Latest news with #JonDuffy
NZ Herald
5 days ago
- Business
- NZ Herald
Supermarkets plead guilty to pricing errors, Consumer NZ calls for penalties
A dodgy multibuy refers to a situation where the individual price and the multibuy price don't add up to a saving. A mince special where a tray of meat was $4 or people could buy three for $20. Photo / RNZ Consumer NZ pointed to a mince special where a tray of meat was $4 or people could buy three for $20. In another case, packaging seemed to be making a confusing difference. Two individual bags of Gingernuts were selling for $5 but the club price for a 500g twin-pack was $5.59. The Gingernuts that were selling for $5 but the club price for a twin-pack was $5.59. Photo / RNZ Sometimes the price on the shelf tag does not match what you pay at checkout. In this case, supplied by Consumer, the price tag on the shelf said $27, but the customer paid more than $35 at the checkout. A box of Coca Cola a customer paid more at checkout for than the shelf price tag. Photo / RNZ Sometimes it's just hard to work out what the price is. Consumer provided an example of double cream brie 'reduced' to $10.60 for a quick sale – or was it on sale for $9.80? Sometimes it seems as though there are multiple labels for the same item. Double cream brie with two prices. Photo / RNZ In this case, two signs had two different prices for a single avocado. 'One said $1.69. The other said $1.99,' Consumer NZ spokesperson Abby Damen said. A sign saying a single avocado is $1.99. Photo / RNZ 'The customer was charged $1.99. She returned two days later to ask what could be done about the pricing error. 'She was offered a refund of the price difference but after pointing out the supermarket's new refund policy, she was refunded $2 and also kept her avocado.' Chief executive at Consumer Jon Duffy said anyone charged more than the shelf price was entitled by law to a refund of the difference. He said both supermarket chains promised a full refund in that scenario, but consumers sometimes had to know what was available. A Foodstuffs spokesperson said with more than 14,000 products in a typical supermarket, and prices changing frequently due to supplier costs, promotions or new product lines, pricing was a complex job. 'But for our customers, it's simple. They rightly expect the price on the shelf to match what they pay at the checkout,' he said. 'We take pricing accuracy as seriously as health and safety, aiming for zero errors. 'Across our local, family-owned stores, we manage tens of thousands of price labels and process millions of transactions every week, and we've invested in better systems, daily checks and electronic shelf labels to help get it right. 'If we do get it wrong, our policy is that the customer gets a refund and keeps the product. We've also strengthened staff training and store processes to make sure pricing is clear and accurate.' Woolworths said it had more 3.5 million transactions in stores weekly 'and sometimes errors do occur'. 'When they do, we try to make things right, through our long-standing and market-leading refund policy. Under that policy, if a customer is charged more than the advertised price for a product, they get a full refund and can keep the product.' Duffy said Consumer had received 20 complaints about supermarket pricing since Tuesday. A normal rate would be two a day, he said. -RNZ
Otago Daily Times
21-07-2025
- Business
- Otago Daily Times
Supermarket pricing errors costing millions of dollars a year
Consumer NZ wants the government to crack down on what it calls a systemic problem of misleading supermarket prices. The consumer organisation said shoppers were too often being stung at the checkout and paying more than the advertised shelf price for items. New World and Pak'n Save owner, Foodstuffs said it took pricing accuracy seriously and had invested in systems and staff training to reduce errors. RNZ has approached Woolworths for comment. Consumer NZ chief Jon Duffy said pricing errors might seem small for individuals but the practice was costing New Zealanders tens of millions of dollars a year. He said the government needed to step in and a petition had been launched calling for tougher penalties for breaches of the Fair Trading Act. Consumer also wanted to see the introduction of a mandatory pricing accuracy code to hold supermarkets to account for errors and automatic compensation for shoppers who were overcharged. Duffy said a recent Consumer survey found 62 percent of shoppers noticed pricing errors over the past year. "This isn't okay, particularly at a time when people are struggling to pay their bills," he said. "It's already illegal for businesses to mislead consumers about prices, but the current law is not forcing supermarkets to up their game." A Foodstuffs spokesperson said the company had invested heavily in better systems, daily checks, and electronic shelf labels to reduce errors. "Our policy is that if a customer is overcharged, they get a refund of that product and get to keep the product. We've also strengthened staff training and store processes to ensure pricing is clear, accurate, and fair." Duffy told RNZ the Fair Trading Act was letting consumers down, citing two cases where Pak'n Save supermarkets had pleaded guilty to breaches, with charges including inaccurate pricing and misleading specials. Duffy said the maximum penalty of $600,000 was not enough of a deterrent. He said while New Zealand didn't need to follow in the footsteps of Australia's $50 million penalty, a fine closer to $10m would be more appropriate. He told RNZ there also needed to be more specific rules in the Act around advertising specials so as not to mislead customers, such as specials on multi-buy products. "There's a double pack of biscuits ... but it's cheaper to buy each pack individually than the special that's advertised as a twin pack. "Those are really common examples that we see." He said if buyers got home and realised they were overcharged after checking their receipt, they should get both a refund and keep the product for free. "Because no doubt you've probably had to get back in the car and drive back to the supermarket to do the supermarket's job for them. You're helping them correct a process they should be getting right in the first place."
Otago Daily Times
21-07-2025
- Business
- Otago Daily Times
Supermarket pricing errors costing Kiwis millions
Consumer NZ wants the government to crackdown on what it calls a systemic problem of misleading supermarket prices. The consumer organisation said shoppers were too often being stung at the checkout and paying more than the advertised shelf price for items. New World and Pak'n Save owner, Foodstuffs said it took pricing accuracy seriously and had invested in systems and staff training to reduce errors. RNZ has approached Woolworths for comment. Consumer NZ chief Jon Duffy said pricing errors might seem small for individuals but the practice was costing New Zealanders tens of millions of dollars a year. He said the government needed to step in and a petition had been launched calling for tougher penalties for breaches of the Fair Trading Act. Consumer also wanted to see the introduction of a mandatory pricing accuracy code to hold supermarkets to account for errors and automatic compensation for shoppers who were overcharged. Duffy said a recent Consumer survey found 62 percent of shoppers noticed pricing errors over the past year. "This isn't okay, particularly at a time when people are struggling to pay their bills," he said. "It's already illegal for businesses to mislead consumers about prices, but the current law is not forcing supermarkets to up their game." A Foodstuffs spokesperson said the company had invested heavily in better systems, daily checks, and electronic shelf labels to reduce errors. "Our policy is that if a customer is overcharged, they get a refund of that product and get to keep the product. We've also strengthened staff training and store processes to ensure pricing is clear, accurate, and fair." Duffy told RNZ the Fair Trading Act was letting consumers down, citing two cases where Pak'n Save supermarkets had pleaded guilty to breaches, with charges including inaccurate pricing and misleading specials. Duffy said the maximum penalty of $600,000 was not enough of a deterrent and said while New Zealand didn't need to follow in the footsteps of Australian's $50 million penalty, a fine closer to $10m would be more appropriate. He told RNZ there also needed to be more specific rules in the Act around advertising specials so as not to mislead customers, such as specials on multi-buy products. "There's a double pack of biscuits ... but it's cheaper to buy each pack individually than the special that's advertised as a twin pack. "Those are really common examples that we see." He said if buyers got home and realised they were overcharged after checking their receipt, they should get both a refund and keep the product for free. "Because no doubt you've probably had to get back in the car and drive back to the supermarket to do the supermarket's job for them. You're helping them correct a process they should be getting right in the first place."
Scoop
21-07-2025
- Business
- Scoop
Price It Right: Consumer NZ Launches Campaign To Stop Misleading Supermarket Pricing
A new petition calls for a mandatory supermarket pricing accuracy code, automatic compensation and tougher penalties. Consumer NZ has launched a new campaign – Price it right – calling on the government to crack down on misleading supermarket pricing practices that are costing shoppers tens of millions of dollars a year across Aotearoa. The consumer watchdog is urging the introduction of a mandatory supermarket pricing accuracy code, with clear rules, meaningful penalties and automatic compensation for consumers when supermarkets get it wrong. 'We're asking the government to step in and deal with misleading supermarket pricing,' said Jon Duffy, Consumer NZ chief executive. 'Too often, shoppers are charged more at the check-out than what's shown on the shelf, or they're misled in some other way. While pricing errors may seem minor on an individual basis, they add up when multiplied across the population. This isn't OK, particularly at a time when people are struggling to pay their bills.' Recent Consumer research found that 62% of New Zealanders noticed pricing errors at the supermarket over the past year. 'This isn't just the occasional mistake – it's an ongoing systemic problem that's adding to the pain people are feeling at the check-out with food prices that are already too high,' said Duffy. Thanks to hundreds of complaints shared by consumers, Consumer filed a formal complaint with the Commerce Commission in 2023. That led to criminal charges being laid against Woolworths NZ and two Pak'nSave stores for misleading pricing. But the problem persists. 'It's already illegal for businesses to mislead consumers about prices, but the current law is not forcing supermarkets to up their game. They have had plenty of chances to fix this. The time for talk is over. It's time for stronger rules with real consequences,' said Duffy. Consumer's Price it right campaign is calling for: a mandatory supermarket pricing accuracy code with clear pricing rules automatic compensation when shoppers are overcharged – such as receiving the item free if the scanned price is higher than the shelf price, there is a special that doesn't offer a genuine saving or the unit pricing is incorrect clear disclosure of consumer rights in store and online tougher penalties and infringement notice powers, like those used in Australia, to deter misleading pricing and promotions. 'We're not asking for much – just fair and accurate pricing that consumers can trust,' said Duffy. 'It's a simple step that would make a real difference.' What you can do Consumer is asking New Zealanders to sign its petition and demand that the government take urgent action. Minister for economic growth Nicola Willis says she's considering introducing tougher penalties for supermarkets that breach the Fair Trading Act and other changes to ensure shoppers are not misled by pricing. Signing the petition will show your support for these moves. Sign the petition: Tell the government to 'price it right' 'It's time supermarkets were held to account. By signing and sharing the petition, you're helping stop misleading supermarket pricing and pushing for real change.'
RNZ News
21-07-2025
- Business
- RNZ News
Campaign to make supermarkets pay for misleading pricing
food economy 25 minutes ago A campaign has been launched to force supermarkets to cough up when shoppers are out of pocket because of misleading pricing. Jon Duffy spoke to Ingrid Hipkiss.
