Auckland, New Zealand – Woolworths New Zealand is facing criminal charges filed by the Commerce Commission, alleging inaccurate pricing and misleading specials that perhaps violate the Fair Trading Act. The charges were officially lodged in the Auckland district Court.

Background: Pricing Concerns in the Supermarket Sector

The Commerce Commission had signaled its intent to file separate criminal charges against Woolworths and two Pak’nSave supermarkets as early as December of last year. This proclamation highlighted ongoing concerns about pricing practices within the supermarket industry, suggesting potential breaches of the Fair Trading Act.

Commission’s Stance: Accurate pricing as a Consumer Right

The Commerce Commission has been vocal about the necessity for accurate and transparent pricing. According to Deputy Chair Anne Callinan, operators should be well aware of the expectations. In a December statement, she emphasized:

Supermarkets have long been on notice about the importance of accurate and clear pricing and specials, and we’re not satisfied with the continuing issues we’re seeing across the industry.
Anne Callinan, Deputy Chair, Commerce Commission

Callinan further stated the importance of pricing accuracy:

Pricing accuracy is a consumer right and an expectation of a competitive market. The major supermarkets are large, well-resourced businesses that should invest the time and effort to get pricing and promotions right.
Anne Callinan, Deputy Chair, Commerce Commission

The charges, she noted, serve as a reminder to all supermarkets to address pricing inaccuracies and enhance their operational processes.

Woolworths’ Response: cooperation and Refund Policy

Woolworths NZ has acknowledged the examination and stated its cooperation with the Commerce Commission. The company plans to thoroughly review the charges.

Interim Managing Director Pieter de Wet addressed the issue, stating:

We know that it is vital that prices are accurate and the prices we advertise are the prices customers are charged at the checkout.
Pieter de Wet, Interim Managing Director, Woolworths NZ

De Wet also highlighted the scale of transactions and the potential for errors:

We have over 3.5 million transactions in our stores each week, and sometimes errors do occur. when they do, we try to make things right, through our long-standing and market-leading refund policy. Under that policy, if a customer is charged more than the advertised price for a product, they get a full refund and can keep the product.
Pieter de Wet, Interim Managing Director, Woolworths NZ