We’ve all felt it – that small thrill when you spot a yellow “special” tag on the shelf or see a loyalty discount appear on your receipt. But in New Zealand, not every bargain is what it seems. Watchdogs say pricing errors and misleading promotions may be costing shoppers millions each year, and some supermarkets are now facing criminal charges for alleged breaches of the Fair Trading Act.
What the law says
Under the Fair Trading Act 1986, retailers must not mislead or deceive consumers about prices or promotions. Advertising a discount that is not genuine, or charging more at the checkout than the shelf price, can breach the act.
The Commerce Commission has warned that supermarket pricing inaccuracies “can lead to consumers paying more than they should”. Grocery Commissioner Pierre van Heerden said in May 2024 that if even a small percentage of transactions are wrong, “New Zealanders could be losing tens of millions of dollars a year from supermarket pricing errors”.
In December 2024, the Commission announced it had filed criminal charges under the Fair Trading Act against Woolworths New Zealand Ltd and the operators of Pak’nSave Silverdale and Pak’nSave Mill Street for alleged inaccurate pricing and misleading “specials”. The companies have said they are cooperating fully and the proceedings are ongoing.
The consumer push-back
Public frustration over scanning errors and endless specials led Consumer NZ to launch its Price It Right campaign in 2024. The organisation is calling for a mandatory pricing-accuracy code and automatic refunds where scanned prices exceed shelf prices. It reports receiving hundreds of examples from shoppers through its website.
Chief executive Jon Duffy said at the launch: “Shoppers deserve confidence that the price they see is the price they pay.”
Loyalty maths – small print, small returns
Supermarket loyalty schemes are legal but often over-promised. Programmes such as Onecard, Clubcard and Flybuys offer member pricing or points that typically return around 0.5–1% of spending, depending on redemption. In other words, a $100 shop may yield roughly $1 in value.
Consumer NZ’s 2024 supermarket survey found more than half of respondents don’t trust specials or loyalty discounts, and many dislike how their data is shared with partner companies. These arrangements are permitted, but the perception gap suggests loyalty perks should be viewed as modest bonuses, not game-changing savings.
Four red flags to watch for
- The phantom “was” price: When a product says “was $10, now $8”, the higher price must have been charged for a reasonable period. Otherwise, it may be misleading under the Fair Trading Act.
- The multibuy trap: “Two for $5” isn’t always cheaper. Compare the unit price – the cost per 100g or per item printed on the shelf label.
- Shelf-to-till mismatch: If an item scans higher than the displayed price, you are legally entitled to pay the lower one. Consumer NZ argues supermarkets should automatically refund the difference.
- Perpetual specials: When an item is almost always “on special”, that may suggest the “regular” price is theoretical. The act requires discounts to represent genuine, time-limited reductions.
Five quick ways to check a deal
- Compare unit prices. It’s the fairest way to judge value across sizes and brands.
- Keep photos of regular buys. A quick snapshot shows whether a current special is truly cheaper.
- Do the maths. If the saving is marginal, it may just be marketing.
- Mind expiry dates. Deep discounts on near-dated stock aren’t bargains if half goes to waste.
- Check your receipt before leaving. Pricing mistakes are easiest to fix on the spot.
Why it matters
Supermarkets process thousands of price changes every day, so occasional mistakes are inevitable. But repeated errors or perpetual specials undermine trust, especially when grocery costs are rising faster than inflation.
Stats NZ data shows food prices increased 4.6% in the year to June 2025, driven largely by higher dairy, meat and produce costs. That makes accurate pricing and transparent discounting more important than ever.
The Commerce Commission’s ongoing grocery market study aims to improve competition and clarity. Until stronger safeguards arrive, individual vigilance remains the best defence.
A genuine bargain is one you can verify, not just one wrapped in yellow signage. If the maths works, enjoy the saving. If it doesn’t, walk away.
True deals still exist – they just take sharper eyes and a little arithmetic to find them.
Herald contributor Nikki Birrell has worked in food and travel publishing for nearly 20 years. From managing your kitchen to cutting costs, she’s shared some helpful advice recently, including how to prep your barbecue for summer grilling, gourmet hacks for elevating budget ingredients and what toppings to choose for different crackers.