The Commerce Commission has received more than 330 complaints so far this year about supermarket promotions, as NZ’s not-for-profit consumer watchdog calls on the public to dob in supermarkets’ dodgy price deals.
The Commission said between March, when its market study into the sector was released, and June of this year it had received 154 complaints with 18 about promotions.
For the year to September, the Commerce Commission had 333 complaints with 53 related to promotions, compared with 429 complaints and 122 related to promotions for the same period in 2021.
The Commission said those complaints covered issues with deals where promotions were the same or more expensive than the normal price, issues with stock of promotional items, issues with stock of promotional reward items and confusing signs which might led shoppers to think a different product is on sale.
Consumer NZ has asked the public to let it know when they see examples of unclear or misleading pricing and promotions so it can hold the supermarkets to account.
The call came after a New Zealand shopper posted a photo on social media of feta cheese on "sale" at a Countdown store with regular pricing stickers showing the special was actually 10 cents more.
Consumer NZ Chief Executive Jon Duffy said in a statement it was crucial supermarkets were honest with pricing so consumers could confidently compare prices and trust they are getting a good deal when they purchase something on special.
Consumer NZ had called for new rules to clear up confusing specials pricing by the supermarket duopoly, Woolworths-owned Countown and Foodstuffs are the two big players, and stop them from using promotional and pricing strategies that make it harder to work out what is a good deal.
The Commission didn’t make this recommendation in its March report, and Duffy said Consumer NZ was not convinced supermarkets would change their ways without pressure from consumers.
“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.”
The Commission's report said consumers were confident and more inclined to shop around when they could compare product offerings both within store and between retailers, and they need an accurate "perception of value" to help choose where they would like to shop.
But pricing and promotional practices used by supermarkets including loyalty programs make it more difficult for consumers to compare prices and make informed purchasing decisions (both when deciding where to shop and which products to buy), reducing the effectiveness of price competition between the major grocery retailers, the Commission said.
Among the Commission’s recommendations are that the duopoly players must open up their wholesale supply chains to competitors.
The Commission found competition wasn’t working well in the grocery sector, and supermarkets were extracting excess profits from NZ shoppers to the tune of $1 million a day.
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