Consumers lose out in supermarket wars

  • Breaking
  • 20/07/2013

By 3 News online staff

Two leading supermarket chains are under fire for misleading consumers about which brand is better to shop with.

Countdown has been censured twice this year for claiming to have cheaper prices than rival Pak'nSave, which in turn is also being investigated by the Commerce Commission, the Herald on Sunday reports.

Pak'n'Save's parent company Foodstuffs laid a complaint with the Advertising Standards Authority after Countdown, owned by Progressive Enterprises, ran a price campaign at one of its outlets on Auckland's North Shore.

The campaign featured two supermarket trolleys filled with products and receipts showing the price comparison. One was from Countdown Sunnynook, and the other from a nearby Pak'nSave on Wairau Rd.

Countdown's trolley was the cheapest, and a display phrase read: "Who really is the cheapest!!!" Foodstuffs complained that was "ambiguous and generally misleading", as most of the items in the trolley were on sale and not a reflection of everyday grocery items.

Progressive Enterprises responded claiming Pak'nSave's television advertisements were misleading in a similar way.

The authority ruled against Countdown, saying the campaign could mislead consumers about which store was generally cheaper. The Pak'nSave ads remain under investigation.

3 News

source: newshub archive