NZ's most complained about business in 2023 revealed

The big supermarket chains topped the list of businesses subject to the most complaints from Kiwis last year, according to new Commerce Commission data.

Data released under the Official Information Act also indicates the total number of complaints levelled against Kiwi companies has increased to a five-year high.

The Commerce Commission received over 12,000 complaints or "enquiries" in 2023 - up from 9400 the year before. The themes in the complaints data included shop promotions, refunds, product characteristics, and pricing inaccuracies.

The agency refers to "enquiries" when responding to requests for complaints data, and stressed that having complaints don't necessarily mean a business has done something wrong.

Those topping the list included well-known brands Countdown, New World, and Pak'n Save.

Last year, Foodstuffs-affiliated and Countdown stores were subject to nearly 900 enquiries to the Commerce Commission.

New World stores were subject to 266 enquiries while Pak'n Save stores had 215 enquiries (481 total). Both brands are shared by separate Foodstuffs co-operatives.

Countdown supermarkets, which recently rebranded to Woolworths, were subject to 402 enquiries - making it the most complained about single company on the list.

The big supermarket chains had also been facing a Consumer NZ lobby campaign over claims of misleading pricing and issues over its advertised promotions last year.

In 2022, the big supermarket chains were subject to significantly fewer complaints. Countdown had 186, New World 67, and Pak'n Save 130.

Meanwhile, Kogan, which owns the Dick Smith brand, was subject to 270 total enquiries in 2023 - significantly higher than in previous years. Last year, it had received complaints from customers who unwittingly signed up for a $149 annual membership programme.

The commission cautioned that traders with a bigger public profile or issues that attract a high level of publicity can generate a "large volume" of enquiries.

"The enquiries data only reflects what consumers have chosen to report to the commission or to other organisations that have in turn provided information to the commission".

Except for Air New Zealand and Sky, there were ongoing investigations into all of the top 10 most complained about businesses.

Commerce Commission fair trading manager Kirsten Mannix said investigations were ongoing and that it would "not be making further public comment at this time".

"In September 2023, the commission opened an investigation into Kogan Australia Pty Limited - trading as Dick Smith - after receiving a large number of enquiries relating to its First membership subscription," she said in a statement.

"In December 2023 investigations were opened into Woolworths New Zealand Limited, Foodstuffs North Island Limited, and Foodstuffs South Island Limited.

"This followed a significant amount of enquiries, including complaints provided by Consumer NZ about alleged misleading pricing and promotional issues."

A spokesperson for Woolworths said: "It’s clearly disappointing to see this, and it’s certainly not what we aspire to as a business.

"As we transform to Woolworths New Zealand, we remain focussed on our long-term commitment - delivering New Zealand’s best supermarket experiences for our customers and team. That means more value, better ways to shop and deeper connections to our communities."

Meanwhile, a Foodstuffs spokesperson said the ratio of Commerce Commission enquiries had been "low" compared to the number of customers served.

"Every week of 2023, our customers shopped with us an average of four million times in our owner-operated stores in communities across the country, or online; that’s 208 million transactions in total.

"While the ratio of enquiries made to the Commerce Commission versus the number of customers we served is low, we do strive to get things right first time and take genuine customer concerns or feedback seriously.

"When we don’t get things right first time, we encourage customers to let us know, so if there’s been a mistake we can quickly look to put things right.

"We also appreciate New Zealanders might want to send their enquiries directly to the Commerce Commission too, and we respect this process and any decision the commission makes to investigate further."

In a brief response, a spokesperson for Kogan Australia said: 'We are voluntarily working with the Commerce Commission to assist with their enquiries."

According to the Commerce Commission, "all complaints - referred to as enquiries - received by the commission are entered into our complaint database".

"The commission categorises incoming contacts as enquiries if they raise a potential issue under one or more of the Acts that the commission enforces, whether this is later investigated or not.

"Enquiries to the commission help us to better understand where to focus our activity and resources – identifying what we should investigate."

"Some enquiries will not be investigated by the commission because they are unfounded or outside our jurisdiction, and some enquiries that are investigated will not proceed to further action."