Sarah Henderson/Delivered
Consumer NZ investigated the prices of fast food chains and found that some increased the cost of each item in a customer’s order when it was delivered.
Consumer NZ is filing a complaint with the Commerce Commission after it discovered that fast food chains raised the prices of items as they were delivered.
Consumer NZ said that in addition to delivery and service charges, restaurants across the country were also charging customers more for each item they received, risking violating the Fair Trading Act.
After receiving complaints from customers, Consumer NZ investigated the prices of fast food chains and found that the cost of each item in a customer’s order increased slightly when delivered.
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A telephone order from one store to pick up a pizza for meat lovers would cost $15.39, Consumer NZ said.
But delivered, the same pizza costs $18.49, plus a $7.99 delivery fee, it said. This meant that the actual cost of having the pizza delivered was actually $11.09, it said.
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Consumer NZ chief executive Jon Duffy said it’s not just the pizza that is more expensive – every item in the cart increased when a customer opted for delivery.
“We believe businesses should be candid about additional delivery charges so that the customer can make an informed decision,” Duffy said.
“The fact that these companies are not candid about the actual cost of delivery means they are at risk of breaking the law.”
Since Consumer NZ’s investigation, a chain had added fine print to its website to let customers know they were charging a 6% delivery service fee, he said.
People were also caught out by hidden charges at other popular fast food chains, he said.
Most customers knew they were paying for the delivery, but they may not know how much it really cost them, he said.
Customers told Consumer NZ that they thought it was intentionally misleading to have two sets of prices for the same menu, without being clear about the different pricing structure.
Consumer NZ said the pricing practices violated the law and would file a complaint with the Commerce Commission.
Third-party delivery services also increased the price of each order item when receiving a delivery, compared to when a customer was dining.