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’nSave 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% of shoppers noticed pricing errors over the past year.
“This isn’t OK, 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’nSave 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, adding that 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 added that 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.”
rnz.co.nz
