Mandatory unit pricing for grocery products

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Submissions due: 11 July 2022, 5pm

MBIE is seeking feedback on the design and scope of mandatory unit pricing for grocery products in New Zealand.

Background

The Commerce Commission has completed a market study looking at how to improve competition in New Zealand’s retail grocery sector. The Commission has made several recommendations for improving competition in the sector, including mandating the consistent display of unit pricing for grocery retail products.

The discussion paper therefore seeks feedback on how mandatory unit pricing should be designed and implemented.

What is unit pricing?

Unit pricing is the price per unit of measure for a product, such as the cost per kilogram or litre. Unit prices are usually displayed as a price per standard unit of measurement, together with the retail price of the product. For example, where a 1.5kg bag of flour is sold for $3.00, the unit price displayed would be $2.00 per kg. 

Unit pricing can help consumers more easily compare between the prices of different products, especially where products are sold in different sized packaging and by different brands. Even when not directly comparing products and retailers, clear and accurate unit pricing information can help consumers develop perceptions of value over time which in turn can help them decide where to shop to best meet their needs. 

What this consultation is seeking feedback on

This discussion paper seeks feedback on:

  • the potential benefits and compliance costs of mandatory unit pricing
  • who mandatory unit pricing should apply to
  • where mandatory unit pricing should apply
  • what units of measurement should be used
  • what, if any, products should be exempt
  • how unit pricing should be displayed

How to make a submission

The discussion paper includes questions for you to respond to in your submission. You do not need to answer all the questions. You can send your submission via email or post to:

  • consumer@mbie.govt.nz with subject line “Mandatory unit pricing consultation 2022”

  • Consumer and Competition Policy
    Ministry of Business, Innovation and Employment
    PO Box 1473
    Wellington 6140
    New Zealand.

If you have any questions about the submission process, or if you need a version of the consultation document in a more accessible format, please email us at consumer@mbie.govt.nz.

Submissions for the consultation close at 5pm on 11 July 2022.

Release of information

MBIE intends to upload PDF copies of submissions received to MBIE’s website at www.mbie.govt.nz. MBIE will consider you to have consented to uploading by making a submission, unless you clearly specify otherwise in your submission.

If your submission contains any information that is confidential or you otherwise wish us not to publish, please:

  • indicate this on the front of the submission, with any confidential information clearly marked within the text
  • provide a separate version excluding the relevant information for publication on our website.

Submissions remain subject to request under the Official Information Act 1982. Please set out clearly in the cover letter or e-mail accompanying your submission if you have any objection to the release of any information in the submission, and in particular, which parts you consider should be withheld, together with the reasons for withholding the information. MBIE will take such objections into account and will consult with submitters when responding to requests under the Official Information Act 1982.