Full Breakdown
Pak’nSave Stores Await Penalties After Fair Trading Admissions
5/12/2026, 4:45:45 AM
Court Proceedings and Alleged Pricing Violations
Two Pak’nSave supermarkets—Mill Street in Hamilton and Silverdale in Auckland—pleaded guilty to eight and ten Fair Trading Act breaches, totaling 18 pricing errors. The Auckland District Court heard the matter before Judge June Jelas, who has reserved sentencing.
Regulatory Background and Prior Cases
The Commerce Commission previously fined Pak’nSave Mangere $78,000 in 2020 for promotional-price discrepancies, a penalty the commission says is insufficient to deter repeat violations.
Key Parties and Their Roles
The parties are the Pak’nSave Mill Street and Silverdale stores, Commerce Commission prosecutor Nick Flanagan, defence lawyer Iain Thain, and Judge June Jelas.
Charges, Penalties, and Financial Stakes
Each breach carries a $600,000 maximum fine. Flanagan proposed starting penalties of $550,000 for Mill Street and $400,000 for Silverdale, with a 25 % discount for early guilty pleas. The commission seeks a 5 % discount for Mill Street and 10 % for Silverdale, while the defence asks for a uniform 10 % reduction.
Official Positions and Arguments
The commission argues that high-volume retailers cannot rely on frequent price changes as a defence and that prior fines were too low to compel change. The defence points to recent system upgrades, manual checks and occasional lower prices for consumers as evidence of remediation. Judge Jelas has not yet ruled on sentencing.
Criticism of Penalty Adequacy and Store Practices
Flanagan criticised the stores for advertising “specials” that were “nothing of the kind” and for over-confidence in new electronic labels, which he said caused unchecked errors. He noted that Silverdale staff manually updated prices until an electronic system was installed in October 2024, yet mistakes persisted.
Conflicting Views on Discount
The commission’s discount proposal (5 % for Mill Street, 10 % for Silverdale) conflicts with Thain’s request for a uniform 10 % discount. Thain also disputes the commission’s claim that Mill Street failed to provide “full facts” and argues it is “not right” to say the stores learned nothing from the Mangere case.
Verbatim Quotes
- “He said being a high-volume business that made frequent price changes was not an excuse for the breaches.” — Nick Flanagan, Commerce Commission prosecutor
- “He also told the court prices had been being advertised as specials when they were “nothing of the kind”.” — Nick Flanagan, Commerce Commission prosecutor
- “Thain also said it was “not right” to say the two stores had learned nothing from the Mangere case.” — Iain Thain, defence lawyer
- “Unless staff were “constantly” scanning, errors could still occur with electronic prices, Thain said, for example, if someone bumped an electronic label or it ran out of battery.” — Iain Thain, defence lawyer
- “He said the court was not in a position to decide on the commission’s claim that Mill St had not provided the “full facts” during an interview.” — Iain Thain, defence lawyer
Future Outlook and Potential Sentencing
Judge Jelas has reserved sentencing until at least mid-June. Final penalties will depend on the court’s assessment of discount proposals and the stores’ remedial measures.
