Shoppers across the nation are potentially losing millions of dollars each year due to supermarket pricing errors, according to the Commerce Commission. Grocery Commissioner Pierre van Heerden highlighted the persistent issue of misleading or inaccurate pricing at major supermarket chains, stating that the situation is “unacceptable” and calling for urgent action.
Van Heerden emphasized that clear and accurate pricing is not just a consumer right but a fundamental expectation in a competitive market. He placed the responsibility squarely on the shoulders of supermarket managers, particularly those at Foodstuffs and Woolworths NZ, urging them to take immediate steps to rectify the issue.
“Consumers should be able to trust that the price advertised is what they will pay,” van Heerden stated. He pointed out that the grocery sector is a $25 billion per year industry in New Zealand, and even minor errors in pricing can accumulate into significant financial losses for consumers. He estimated that these errors could cost shoppers tens of millions of dollars annually, a situation he deemed “unacceptable.”
The Commerce Commission has outlined several supermarket expectations in response to these ongoing issues. These include reviewing and amending refund policies to demonstrate a commitment to pricing integrity, prominently promoting these in-store and online policies, and ensuring comprehensive systems are in place to record and address pricing complaints. Van Heerden noted that these expectations are “forward-looking” and intended to prevent future compliance issues.
Supermarkets have acknowledged the commission’s concerns and are reportedly taking steps to address the issue. Woolworths NZ, for instance, has committed to updating and prominently promoting its refund policy, while Foodstuffs South Island claims to have robust technology in place to ensure price accuracy and quickly correct any mistakes. Foodstuffs North Island reviews its refund policy to ensure it aligns with the commission’s guidelines.
However, Consumer NZ has expressed concern that the responsibility for policing pricing errors is being left to shoppers rather than being closely monitored by the commission itself. Gemma Rasmussen, head of research and advocacy at Consumer NZ, criticized the supermarket duopoly’s lack of initiative and investment in addressing these issues, noting that accurate pricing is a primary consumer expectation.
Rasmussen revealed that Consumer NZ received over 600 reports of problematic pricing in supermarkets last year, ranging from mismatched shelf and checkout prices to misleading loyalty card pricing and multi-buy promotions costing more than individual purchases.
As the commission continues to monitor the situation, it remains to be seen whether supermarkets will take the necessary steps to ensure pricing integrity and restore consumer trust. For now, the onus is on both shoppers and supermarkets to keep pricing errors in check.
