New Zealand Commerce Commission sues Foodstuffs South Island over alleged price‑fixing

The New Zealand Commerce Commission announced it will file civil proceedings against Foodstuffs South Island Ltd (FSSI), alleging the company imposed restrictions that prevented independently owned PAK’nSAVE supermarkets in the South Island from offering certain discounts without prior approval. Commission chair Dr John Small said the conduct deprived New Zealanders of the best possible prices and limited competition.

The Commission alleges that FSSI set centrally‑controlled "Super Deal" and "Every Day Low Price" promotional prices and prohibited franchisees from discounting below those levels, constituting resale price maintenance, which is illegal under section 37 of the Commerce Act. The alleged anti‑competitive guidelines were in place for several years across all South Island PAK’nSAVE stores. Proceedings are due to be filed shortly, and the Commission declined further comment.