News

Two Pak'nSave stores fined $580,500 after repeated checkout pricing errors

Pak'nSave stores in Auckland and Hamilton have been fined a combined $580,500 for misleading customers through pricing errors. The Commerce Commission says supermarkets must ensure shelf prices match checkout charges.

Go Media · · 2 min read

Two Pak'nSave stores fined $580,500 after repeated checkout pricing errors

Two Pak'nSave supermarkets have been fined a combined $580,500 after admitting repeated pricing errors that misled customers, the Commerce Commission announced on Friday.

Pak'nSave Silverdale in Auckland received a $234,000 fine for ten charges, while Pak'nSave Mill Street in Hamilton was fined $346,500 for eight charges.

Both stores pleaded guilty to breaches of the Fair Trading Act and were convicted in the Auckland District Court.

The case involved discrepancies in advertised pricing and specials. Charges were laid in 2025 over conduct identified up to September 2024, according to reporting by 1News.

The Commerce Commission said the prosecutions showed that supermarkets must ensure customers are charged the prices displayed on their shelves.

Regulator warns other supermarkets

Commerce Commission deputy chair Anne Callinan said major grocery retailers had received repeated warnings about their pricing responsibilities.

She said shoppers were entitled to accurate prices and that profitable supermarkets should invest in systems capable of preventing misleading errors.

The Commission has indicated it will continue bringing enforcement action where it identifies wrongdoing.

Callinan also linked the case to the Government's review of the Fair Trading Act.

Under changes being considered, the regulator could potentially seek civil penalties of up to $5 million for each breach, compared with the current maximum of $600,000.

Those changes remain proposals rather than penalties already available to the Commission.

The regulator is awaiting the court's full written judgment, which it intends to publish on its case register.

What customers and supermarkets can do

Foodstuffs North Island apologised following the convictions, saying customers should be able to trust the prices displayed in stores.

In a statement reported by 1News, the company said its stores processed millions of transactions each day and that pricing mistakes were relatively uncommon, although still frustrating for shoppers.

It said both supermarkets had strengthened procedures, introduced additional checks and provided further staff training since the problems were identified.

For shoppers concerned about discrepancies, comparing shelf labels and promotional prices with checkout totals can help identify possible errors. Keeping receipts and relevant pricing information can also provide a record when raising a concern with a store.

The supplied reports do not establish an automatic refund arrangement for customers affected by these particular breaches.

The Commission is also pursuing separate proceedings involving other grocery businesses. Allegations against Woolworths NZ remain contested, with the company pleading not guilty.

The next development in the Pak'nSave case will be publication of the court's written judgment, while broader supermarket investigations and the proposed Fair Trading Act changes continue.

Sources

Asian Insider newsletter

Stay across New Zealand.

Free email updates with news and stories from New Zealand and its Asian communities.

Subscribe free