Two Pak’nSave stores fined $580,500 for misleading pricing

Two Pak’nSave supermarkets have been fined a combined $580,500 by the Auckland District Court for breaching the Fair Trading Act through inaccurate pricing. Pak’nSave Silverdale in Auckland was fined $234,000 for 10 charges, while Pak’nSave Mill Street in Hamilton received a $346,500 fine for eight charges. The supermarkets pleaded guilty to misleading customers by displaying shelf prices that did not match the amounts charged at the checkout.

The charges involved items such as bread, lemons, tissues, and dishwashing liquid, as well as multi-buy deals that failed to offer genuine savings. Pak’nSave Mill Street specifically faced charges for promotional bread that was actually more expensive than previous prices. The legal action followed a complaint from Consumer NZ, which provided examples from hundreds of shoppers regarding pricing issues.

Commerce Commission deputy chairperson Anne Callinan stated that the commission has long warned major supermarkets to ensure shelf prices match till prices. While the commission is satisfied with the penalties, Callinan noted that the case highlights the need for a government review of the Fair Trading Act. Proposed changes could increase maximum fines from $600,000 to $5 million per breach to create a stronger deterrent.

Foodstuffs North Island expressed regret that customers were let down and stated that the stores have since strengthened processes and training. During sentencing, lawyer Iain Thain argued that errors could stem from human mistakes or malfunctioning labels. Consumer NZ chief executive Jon Duffy described the fines as a “drop in the bucket” that may not deter future conduct.

How it developed

• Fri 30 Oct, 11:03amFoodstuffs North Island responded that they have strengthened processes and training to prevent future mistakes.

Where reports differ

• One report notes the charges were filed in March last year, while another states they were laid in 2025

Compiled from reports by The Post, Stuff, 1News, RNZ, NZ Herald and Waikato Times.