A two-day hearing in the Christchurch District Court began today.
Inspector Ian Paulin, the police alcohol harm prevention officer, has applied to the Alcohol Regulatory and Licensing Authority to suspend the off-licences of 35 New World supermarkets - the majority of stores in the South Island.
New World is owned by Foodstuffs.
The Sale and Supply of Alcohol Act only allows discounts of more than 25% to be promoted inside licensed premises.
Paulin alleges the supermarket chain has breached those rules through online advertising relating to the advertisement of DB Export Beer which was advertised with a discount of 26.1%.
Paulin said the situation was not isolated to one store.
Ashburton New World owner Jeremy Rooney was cross-examined this morning.
He was asked by the prosecution why he did not know that the advertisement was not legal.
"There are 18,000 products in my store - to know the price of all of them is not possible," he replied.
Rooney told the court the supermarkets received the planned sales about four weeks ahead of them going live, but it did not show the discount percentage - only the cost price, sale price and GST.
The hearing continues.
