Deals that cost you money

Photo / Martin Sykes

Shoppers have been warned to check twice before assuming a "low price" promotion means a discount deal.

The Herald on Sunday found groceries, clothes and electronics being sold as special promotions - but what looked like a markdown was only the regular price.

In one case, the "deal" advertised was actually more expensive than the usual price.

Children's T-shirts on sale at The Warehouse in Auckland's Downtown shopping centre were displayed this week under a promotional sign at a price of $7.99. But the original prices for the clothing were between $5.99 and $6.99.

The same yellow and red signs were displayed elsewhere in the store to advertise discount prices.

The Warehouse operations general manager Karl Parker said he would look into the incident, because it went against company policy.

Discount items were clearly marked with signs reading "save now", Parker said.

He denied using similar signs for non-sale items was misleading: "Not really, and we haven't had any feedback otherwise."

At Dick Smith a Uniden cordless phone was promoted with a large Christmas-themed sign, but there was no discount on the $74 price.

The same signs were being used elsewhere in the store to promote special deals.

Products were also promoted with signs reading "Great price" or "New low price", but without any information on whether the item was discounted.

Dick Smith spokesman Luke Schepen said such signs were used to highlight products that were good value or had dropped in price because of renegotiated deals with suppliers.

Store managers could also chose to promote some items. "If they like a product or want to recommend it to customers you'll often find they highlight those."

In Woolworths supermarkets, "low price" tags are used widely to highlight products, but don't signal a discounted price. The tags are the same size and shape, but a different colour from those used for products on special.

A spokeswoman for Progressive Enterprises, which owns the chain, said the signs were used to draw attention to Select and Home Brand products, which were generally a lower-price option.

The Fair Trading Act prevents retailers from making false or misleading representations about the price of goods.

Consumer New Zealand adviser Maggie Edwards said while these cases might not breach the act, some came close."Our message is to check," she said. "Don't assume anything."