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Pak’nSave Silverdale has been fined $234,000 after pleading guilty to ten charges relating to inaccurate pricing, in breach of the Fair Trading Act.
The supermarket was one of two Foodstuffs North Island stores convicted in the Auckland District Court, with Hamilton’s Pak’nSave Mill Street fined $346,500.
Commerce Commission deputy chair Anne Callinan said supermarkets had been repeatedly warned to ensure shelf prices matched those charged at the checkout.
“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.
“Despite this, Auckland’s Pak’nSave Silverdale and Pak’nSave Mill Street, in Hamilton, have now been criminally convicted for repeated pricing errors that misled their customers.”
She said the Commission would not hesitate to prosecute other supermarkets if it believed there is wrongdoing.
“Consumers are entitled to rely on accurate pricing, that is the bottom line. These are highly profitable stores who should be investing in pricing systems that ensure these errors that mislead consumers do not happen.”
Pak’nSave Silverdale was fined $234,000 for ten charges, and Pak’nSave Mill Street was fined $346,500 for eight charges.
Callinan said the case highlighted the need for proposed Fair Trading Act changes that would allow the Commission to seek substantially higher penalties.
Increasing the penalties and changing to a civil regime as proposed would give the Commission the option to push for fines of up to $5 million for each breach, compared to the current maximum of $600,000.
“Fines in this range would have a much stronger deterrent effect and encourage genuine behaviour change,” Callinan said.
“The proposed changes to the Fair Trading Act will support fairer outcomes for consumers and level the playing field for businesses following the rules.”
The Commission said grocery sector breaches remained a priority, with several cases involving major supermarkets underway.
Its case against Woolworths NZ over similar pricing conduct is ongoing. Woolworths has pleaded not guilty.
The Commission also has proceedings against Foodstuffs North Island and Gilmours alleging cartel conduct. Separately, in August, it announced civil proceedings against Foodstuffs South Island for allegedly restricting independently owned Pak’nSave stores from discounting selected products.
