Pak’nSave Fair Trading Act Breach: Fines & Consumer Rights

If you’ve ever scanned a price tag at the supermarket only to find a higher number at the checkout, you know the frustration. That exact scenario has landed two Pak’nSave stores in legal trouble after the Commerce Commission filed 18 charges for misleading pricing.

Supermarkets involved: 2 (Pak’nSave Silverdale and Mill Street) ·
Total charges: 18 ·
Breach period: October 2022 – September 2024 ·
Potential maximum fine: Up to $3 million per charge

Six key facts from the case show the scope of the pricing failures at these two stores.

Who is Pak’nSave owned by?

Pak’nSave is owned and operated by Foodstuffs, a cooperative of independent retailers that also runs New World and Four Square stores. The cooperative model means each supermarket is independently owned by a local owner-operator, while Foodstuffs provides the branding, supply chain, and central support. The Commerce Commission’s case targets two specific store operators: Silverdale Food Warehouse Limited (trading as Pak’nSave Silverdale) and Gladstone Retail Limited (trading as Pak’nSave Mill Street).

Chris Quin is the CEO of Foodstuffs North Island, the larger of the two regional cooperative divisions. Quin has been in the role since 2017 and oversees more than 280 stores, including the two now facing court action. The ownership structure means that while Foodstuffs sets group policy, individual store operators are directly responsible for day-to-day pricing compliance. For more on individual store operations, see Pak’nSave Taupo: Hours, Online Shopping & Weekly Specials.

Role of Chris Quin, Foodstuffs North Island CEO

• Commerce Commission (case register – Silverdale) notes the charges apply to the store operator, not the cooperative itself
• Quin has publicly stated that Foodstuffs takes pricing accuracy seriously and has invested in improved systems

The implication: while the cooperative model diffuses accountability, regulators are making clear that pricing compliance is a non-negotiable cost of doing business.

What is Section 13 of the Fair Trading Act?

Section 13 of the Fair Trading Act 1986 is the key legal provision the Commerce Commission says Pak’nSave violated. It prohibits false or misleading representations about goods and services, including their price, quality, nature, and characteristics. A business cannot advertise a price that is not the price it charges, nor can it promote a “special” that is not genuinely discounted.

The current maximum penalty for a company breaching the Fair Trading Act is $600,000 per offence, as outlined by Consumer NZ (consumer rights body). Individuals found liable can be fined up to $200,000. The government has proposed raising company penalties to either three times the commercial gain, the value of transactions, or up to $5 million – whichever is highest (Beehive.govt.nz (NZ government official site)).

The Commerce Commission enforces the Act and has made supermarket pricing a priority area. In December 2024, the Commission announced criminal proceedings against Pak’nSave Silverdale, Pak’nSave Mill Street, and separately against Woolworths NZ.

What constitutes misleading or deceptive conduct

• Consumer Protection (NZ government agency): Any misrepresentation of price is likely a breach
• The Commission alleges the two stores advertised prices that did not match point-of-sale prices (Commerce Commission)

Examples of false representations in pricing

• Promotional prices that were not genuine specials – items ticketed as “special” but sold at regular price
• Mill Street case (Commerce Commission): Allegations span September 2021 to August 2024

Do shops have to show prices in New Zealand?

Yes. Under the Fair Trading Act, shops must clearly display prices for goods. If a business displays a price, it cannot charge more than that displayed price, according to Consumer Protection (NZ government agency). This principle covers shelf labels, specials tickets, and online pricing.

Misleading pricing, such as inaccurate specials, is a direct breach. The Pak’nSave case involved incorrect pricing on hundreds of items over two years, with the alleged practices including:

• Prices at checkout higher than shelf labels
• “Special” or discounted prices that did not reflect a genuine saving

The Commerce Commission said the charges were intended to remind supermarket operators to fix ongoing pricing accuracy issues and improve internal processes (Commerce Commission (regulator statement)).

Consequences of not displaying prices or showing incorrect prices

• Breach of Fair Trading Act – companies face fines up to $600,000 per charge, individuals up to $200,000 (Consumer NZ)
• Customers can complain to the Commerce Commission or Consumer Protection
• Reputational damage – Pak’nSave Māngere was fined $78,000 in 2020 for similar misleading promotional pricing (Buddle Findlay (law firm analysis))

The catch: even with clear legal requirements, the gap between shelf price and checkout price remains a persistent issue in New Zealand retail.

Who created Pak’nSave?

Pak’nSave was created by Foodstuffs in 1985, with the founding store opening in Glen Innes, Auckland. The concept was built on a low-price, no-frills model: warehouse-style stores, minimal décor, and a “New Zealand’s lowest grocery prices” promise. In 2025 the brand celebrated 40 years of operation.

The founding idea was to offer a no-frills alternative to the more polished supermarkets of the time. That ethos continues today, but the pricing integrity behind the promise is now under legal scrutiny.

Founding and first store

• First store: Glen Innes, Auckland, 1985
• Ownership: Foodstuffs cooperative (independent retailer-owned)
• Current reach: 60+ stores across New Zealand

What this means: Pak’nSave’s founding promise of low prices is only credible when prices are accurate, and the current case puts that credibility on the line.

What are the 7 rights of a consumer?

New Zealand law recognises seven fundamental consumer rights: safety, information, choice, redress, education, a healthy environment, and representation. These rights are enshrined primarily through the Consumer Guarantees Act and the Fair Trading Act.

The right to information is directly relevant to the Pak’nSave case. The Fair Trading Act protects consumers’ right to accurate information about products and prices. When a supermarket displays a price that is higher at checkout, it violates that right.

The seven rights are:

• Safety: Products must be safe to use
• Information: You have the right to accurate, honest information about goods and services
• Choice: Competition and access to a range of products
• Redress: The right to complain and seek a remedy
• Education: Knowledge of consumer rights and how to enforce them
• Healthy environment: Products and services should not harm the environment
• Representation: Consumers should have a voice in policy decisions

The breach of the Fair Trading Act directly undermines the right to information, as Consumer Protection (NZ government agency) emphasises: any price misrepresentation is likely a breach of the Act.

How these rights relate to Fair Trading Act breaches

• Misleading pricing violates the right to be informed (Consumer NZ)
• The Commerce Commission’s action aims to restore that right for consumers shopping at the affected stores

The takeaway: the right to accurate information is the consumer protection most directly at stake in the Pak’nSave case.

Expert perspectives on the breach

“The charges are to remind supermarket operators to fix ongoing pricing accuracy issues and improve internal processes.”

— Commerce Commission (NZ competition regulator)

“Any price misrepresentation is likely a breach of the Fair Trading Act. Shoppers should always check shelf prices against the checkout amount.”

— Consumer Protection (NZ government agency)

The implication is clear: regulators see supermarket pricing as a systemic problem, not just an isolated mistake. The 2020 Pak’nSave Māngere fine of $78,000 for similar issues shows this has been a recurring pattern.

For consumers, the case is a stark reminder that the right to accurate information is only as strong as the enforcement behind it. The Commerce Commission’s actions suggest they are willing to pursue even the biggest players. For readers interested in the broader legal context, see Justice of the Peace: Duties, Salary, and How to Become One for background on New Zealand’s regulatory and legal roles.

For Foodstuffs and its independent retailers, the choice is clear: invest in pricing accuracy systems and training, or face repeated legal action and reputational damage. The proposed penalty increases – up to three times commercial gain or $5 million – mean the cost of getting it wrong will only grow.

This sequence shows the progression from alleged breaches to guilty pleas over a three-year enforcement process.

Shoppers at the PaknSave Mill Street store can also check for weekly specials to save on groceries.

Frequently asked questions