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Consumer New Zealand sceptical about Countdown price freeze

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The country’s consumer watchdog says Countdown’s move to freeze some of its prices is positive, but the supermarket’s profits are still sky-high.

Larger than usual queues outside of Countdown Greenlane a day before the supermarkets shut on Good Friday.

Photo: RNZ / Cole Eastham-Farrelly

Countdown is putting a temporary price freeze on 500 items over winter in response to the rising cost of living.

Countdown says it has identified a variety of winter staples including: tinned tomatoes, butter, cheese, sugar, flour, shaved ham and more.

Whatever price these are on 9 May is the price they will stay at for the winter months, no matter what happens with inflation.

Consumer New Zealand chief executive Jon Duffy said it was an acknowledgement that groceries were not affordable.

“This is an acknowledgement by Countdown of the role they have played in driving up the cost of living for a lot of New Zealanders around grocery prices, it’s a shame that it didn’t happen earlier but it’s good that we’re making progress.

“In my mind it does seem strange if we were to be applauding a duopolist from taking a pause from the excessive profits that they’re making on us just for winter and we should be asking about how we got to this place in the first place.”

The Commerce Commission has found that the supermarket sector is making more than $1 million in excess profits a day, Duffy said.

He said, even at the frozen prices, the items will still be bringing in big profits for the chain.

Duffy said it was likely Countdown had already paid for three months worth of supplies at a set price, so the supermarket might not lose much money.

He said although he applauds the sentiment behind what Countdown is doing, but the sector has been under a sustained period of negative public sentiment.

“So I think if anyone needs to be applauded it’s probably the shoppers of New Zealand who have really made their voice heard and it finally made it, I guess to the boardroom at Woolworths and it’s meant that Countdown has taken this move to address that negative public sentiment.”

Duffy said if there were normal competitive pressures on the supermarket sector, “this would have happened a lot earlier because Foodstuffs and Countdown would have been completing more on price”.

It is clear that competition is not working well for consumers, as highlighted in a Commerce Commission report, when the only way consumers can get a break is when one of the duopolists feels it is a good public relations move, he said.

It will be interesting to see how Foodstuffs which owns New World and Pak ‘n Save supermarkets deals with this price freeze, Duffy said.

He said in many places people only have the option of shopping at a Foodstuffs owned supermarket because that is the only option available.

Duffy said he does not think this will ultimately increase competition between the two supermarket chains because “the underlying market structure is broken”.

“The danger is it distracts from the problem still exists, really it’s just taking a minor pause on the excessive profits the duopoly are able to extract.”

He said it is likely Countdown prices will go back up again after the three month period ends. (Source – RNZ)

Business

Jetstar to charge new fees for using overhead lockers for carry-on

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Jetstar will soon charge customers money for using overhead lockers on its aircraft, with prices starting from $23.

The Qantas-owned budget carrier said it was part of a change in its carry-on model, which included removing its 7-kilogram carry-on weight limit.

It would instead move to a size-based carry-on baggage model and a fee to use the overhead bins.

From 2 February 2027, all Jetstar bookings would include one underseat bag such as a backpack, handbag or laptop.

Those who needed more carry-on baggage would have to pre-purchase what the airline called Priority Carry-on.

The add-on would allow for a second larger bag for the overhead locker, and those passengers would be among the first to board.

Jetstar said the availability of Priority Carry-on would be limited, and would start at $23 one-way on selected flights and vary.

For example, Dunedin to Auckland one-way would start at $23, Christchurch to Wellington one-way would be from $28, and Auckland to Brisbane from $34.

“We know that weighing carry-on bags at the gate can be frustrating for our customers and for our crew,” Jetstar chief executive Stephanie Tully said.

“To make packing easier we’ve decided to remove the 7kg weight limit, so from February, the main thing customers will need to think about is the size of their carry-on.”

Jetstar also detailed its size limits for underseat and overhead bags.

Underseat bags would have to be up to 40 x 30 x 20cm, and overhead bags with Priority Carry-on would have to be up to 56 x 36 x 23cm.

“By giving customers an underseat bag with the option to add Priority Carry-on, we can make better use of overhead locker space, streamline boarding and help more flights depart on time,” Tully said.

“Our new carry-on baggage model provides more choice to customers while helping to keep our fares low. You only pay for what you need – travelling with less means paying less, and you can always add more if you need.”

Jetstar said there were no changes to its checked baggage allowance.

It said customers with existing bookings for travel after 2 February 2027 would be upgraded to include Priority Carry-on at no cost.

Source: RNZ

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Business

Fake ‘New Zealand-based’ sites fool online shoppers

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Consumer New Zealand is warning online shoppers to be extra aware when attempting to buy Kiwi-made following a number of reports about online stores appearing to be local, when in fact they are based overseas.

A website called Mytamariki says it sells products that “support everyday family life in New Zealand”, however the business address and website is listed as being in Hong Kong.

Reviews of the website on Facebook and Trust Pilot have claimed products on the site are also available on AliExpress.

Consumer New Zealand chief executive Jon Duffy told Morning Report websites similar to these are becoming more common.

“Unfortunately they’re on the increase and it is really difficult for consumers to tell the difference sometimes.

“There’s different ways consumers can interact with websites that are pretending to be from New Zealand, but aren’t. It could be directly through a website like the Mytamariki example, but equally through places like Facebook Marketplace, Shopify, and other platforms like that.

“There’s ample opportunity for businesses to claim New Zealand origin, but not actually be from here.”

He says there are some simple things people can do if they are unsure if a business is legitimately based in New Zealand.

“If a business is claiming to be located in a particular location in New Zealand, do a Google Maps check, see if that shopfront is actually there.

“There was a recent example of a business claiming to be based in Arrowtown when it wasn’t, and that took in a number of people, but that business certainly didn’t have its shopfront on the main street of Arrowtown.

“The domain name commissioner, which is part of Internet NZ, registers all .co.nz and .nz domain names. So if a business purports to have a New Zealand domain name, you can look up who’s behind that business through the domain name commissioner.

“And if the website’s appearing to be a .co.nz website but they’re not registered with the domain name commissioner, that is a huge red flag and you shouldn’t deal with them.”

Duffy says it is not as simple as authorities having a website taken down, given the global nature of online retail.

“If a site is actively misleading people and it’s trading through a platform such as Facebook or Shopify, you can complain. Whether they take action, you kind of roll the dice.

“It’s illegal for businesses to mislead consumers in New Zealand, but often these businesses are based overseas. So regulators like the New Zealand Commerce Commission really struggle to do anything about misrepresentations about country origin and things like that when the business is based offshore.”

Duffy said there was a difference between a store being misleading and one being run by scammers.

“Some are just outright scams. They’re looking to take money off you and they never had the product that they said they were going to sell. So that’s out-and-out fraud. But other businesses will misrepresent what they’re selling to you.

“Using that Arrowtown example, it was advertising designer New Zealand-made clothing, but what turned up was cheap, Chinese-made product that didn’t match the description. So you got something, but it certainly wasn’t what you thought you were paying for.

“And then being able to turn around and deal with the website to get a refund as you would get if you were dealing with a genuinely domestically located store, proves very, very difficult.”

“Unfortunately, consumers need to protect themselves, because there’s very little the New Zealand authorities can do,” Duffy said.

Mytamariki has been contacted for comment.

Source: RNZ

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Breaking News

Two seriously injured near Levin after ambulance, gas truck collide

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A St John’s paramedic and a LPG delivery driver have been seriously injured in a crash on State Highway 1, north of Levin.

St John’s area operations manager Gareth Collings said a rapid response unit was caught up in the crash which happened at 10.40 am near Poroutawhao, north of Levin.

“The paramedic in the rapid response unit and the driver of the other vehicle were both treated for serious injuries and transported to Palmerston North Hospital by ambulance. Our thoughts are with those impacted by this incident and we are offering support to our people who were involved,” Collings said.

St John would be “supporting police” investigating the cause of the crash.

A Genesis Energy LPG delivery vehicle was involved in the crash.

A Genesis Energy LPG delivery vehicle was involved in the crash. Photo: RNZ / Samuel Rillstone

Genesis Energy’s Ed Hyde confirmed one of its LPG delivery drivers was involved in the crash.

“Genesis has another vehicle on the way to the scene to collect the LPG cylinders and we will work with emergency services to make the site safe,” Hyde said.

Workers on a nearby site told RNZ they saw a St John vehicle travelling north with flashing lights before the crash.

St John has been approached for comment.

A reporter at the scene said workers unloaded household gas canisters from the bed of a smashed-up truck outside Lewis Farms on SH1.

The truck has lost its front wheels and the damaged cab was resting on the ground.

More than 100 vehicles were backed up at a cordon before traffic was allowed through.

~ RNZ

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