The Auckland District Court has fined two Pak’nSave supermarkets a combined $580,500 for repeated breaches of the Fair Trading Act involving inaccurate shelf pricing and misleading promotions.
Court imposes fines on Silverdale and Hamilton stores
The Auckland District Court fined Pak’nSave Silverdale $234,000 on 10 charges and Pak’nSave Mill Street in Hamilton $346,500 on eight charges. Both stores, operated under the Foodstuffs North Island co-operative, pleaded guilty.
Offences occurred between October 2022 and September 2024. They included advertised prices that did not match checkout charges and promotions that failed to deliver genuine savings compared with regular prices.
Commerce Commission highlights ongoing issues
Commerce Commission deputy chair Anne Callinan said the regulator 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.
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.
She added that the case highlights the need for Fair Trading Act reform. Increasing the penalties and changing to a civil regime as proposed will 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.
The 2020 fine of $78,000 against Pak’nSave Māngere for six similar charges did not deter further conduct, prosecutors argued.
Broader context of supermarket pricing scrutiny
The enforcement follows the Commerce Commission’s 2022 grocery market study. The regulator estimates pricing errors in New Zealand’s $25 billion annual grocery sector likely cost consumers tens of millions of dollars each year.
Consumer NZ research shows 62 percent of shoppers noticed pricing inaccuracies in the past year. Two-thirds reported regular encounters.
Foodstuffs North Island controls an estimated 53 percent of the grocery market through its co-operative of owner-operated stores.
Operator and consumer responses
A Foodstuffs North Island spokesperson said the stores take this matter seriously and have co-operated fully with the Commerce Commission. Errors are relatively rare but any inaccurate pricing is unacceptable.
Consumer NZ chief executive Jon Duffy said consumers deserve clear, honest information when making purchasing decisions. Misleading pricing not only erodes trust, but it also unfairly disadvantages shoppers amidst an ongoing cost of living crisis.
Consumers deserve clear, honest information when making purchasing decisions. Misleading pricing not only erodes trust, but it also unfairly disadvantages shoppers amidst an ongoing cost of living crisis.
Path to stronger penalties
The government announced in November 2025 plans to raise maximum penalties under the Fair Trading Act. Changes are expected to take effect by late 2026.
The new regime will allow fines up to the greater of $5 million, three times commercial gain, or transaction value for most breaches.
Economic Growth Minister Nicola Willis expressed disappointment that major chains had not ensured processes to prevent inaccurate pricing.
This case forms part of parallel actions, including charges against Woolworths NZ and civil proceedings against Foodstuffs South Island over resale price maintenance.
The fines signal the regulator’s willingness to seek higher penalties ahead of legislative reform. They also underscore the financial and reputational costs for owner-operators in a high-volume sector where even small error rates affect many households.
