Commission lays down steps being taken to help consumers
Supermarkets are being challenged to step up and make offers to help Kiwi households save this Christmas and holiday season.
New Zealand’s Grocery Commissioner Pierre van Heerden (pictured) said the supermarket sector has a “real” opportunity to “bring some Christmas cheer” to consumers by offering meaningful savings and helping alleviate pressures from cost-of-living expenses. The commissioner would like to see “genuinely good prices”, particularly when demand is at its peak.
Path towards improved transparency and fair competition
“We know this has been a particularly challenging year for Kiwi consumers with cost-of-living pressures, so I’m asking supermarkets to implement Everyday Low Pricing (EDLP) throughout the holiday season rather than the practice of frequently moving prices up and down – to help ensure Kiwi consumers are getting a genuinely good price when they shop for their groceries,” said van Heerden.
He is also urging supermarkets to ensure they advertise specials in an accurate manner and avoid misleading promotions. “All retailers have obligations under the Fair Trading Act to ensure that consumers are not misled – all pricing and promotions therefore should be clear, accurate and unambiguous so that consumers can make a well-informed decision,” said the Commissioner.
“As one of the largest sectors in New Zealand, supermarkets should lead the way with accurate pricing and value for money. This is a sector that touches every consumer in New Zealand so it’s important they get this right.”
In July 2023, the Grocery Industry Competition Act came into force. This gives the Commerce Commission powers to monitor and regulate the grocery sector. The changes that come with the Act are designed to bring more competition to the sector and more transparency to agreements between the regulated grocery retailers and suppliers.
In August 2023, unit pricing regulations also came into effect. These require particular grocery retailers to display unit prices for goods clearly and legibly. As physical stores are required to comply by August 2024, major grocery retailers have been encouraged to start taking steps towards implementation.
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