Consumer NZ launches supermarket ‘specials’ crusade

22nd September 2022 By Staff Reporter | news@foodticker.co.nz | @foodtickernz

Consumer New Zealand says it is not convinced that supermarkets are following Commerce Commission recommendations for clear pricing, so is mounting its own campaign against “dodgy specials”.

The consumer advocate has asked shoppers to send in examples of unclear or misleading pricing and promotions so “it can hold the retailers to account”.

It had wanted one of the results of the Commerce Commission’s market study of the $22bn grocery sector to be a set of rules that would stop retailers from using what they say are “confusing pricing and promotional strategies”.

But this did not happen, said Consumer NZ.

Instead, the Commerce Commission recommended supermarkets take responsibility to ensure their pricing and promotional practices are simple and easy to understand.

“We’re not convinced the supermarkets will change their ways without pressure from consumers,” Consumer NZ chief executive Jon Duffy said, adding that it received regular complaints about supermarket ‘specials’.

“Retailers know shoppers are more likely to buy a product if it’s on special – this leaves consumers vulnerable if specials are not genuine. We have seen plenty of examples through complaints we receive.

“Whether it’s a multi-buy that works out to be the same price whether you buy one or five items, a product advertised ‘on special’ selling for its regular price, or something advertised as being on special that’s charged at the regular price, we want to hear about it.”

The Commerce Commission’s final report did recommend the introduction of measures directed at improving some of the information provided to consumers, including ensuring that pricing and promotional practices are simple and easy to understand, as well as bringing in mandatory unit pricing.

The government has started work on mandatory unit pricing, with the Ministry of Business, Innovation and Employment undertaking consultation on how it should be designed and implemented as part of its grocery sector reform. The consultation closed in July.

It has not laid out any further plans in respect of addressing pricing and promotional practices.

According to Foodstuffs’ Market Study Reporting Dashboard, it is “working to simplify our pricing and promotions, to make them easier for our customers to understand” and the supermarket co-op estimates that the work will be complete by the second half of 2022.

“Extensive work is underway to introduce a new simpler pricing and promotions structure at Pak’nSave and New World,” Foodstuffs said, adding it is “working to move away from the historical mix of promotions by introducing more products at everyday low pricing”.

It launched its Everyday Low Pricing initiative last month.