ACCC โขLaunches Legal Action Over Alleged Fresh Produce Price fixing
The Australianโ Competition and Consumer Commission (ACCC) has โinitiated court proceedings againstโฃ several fresh produce suppliers over allegations of cartel conduct involving price fixing. The case centres around the supply ofโฃ vegetables to supermarket chain ALDI, specifically concerning produce sold under “agile” pricing arrangements.
The ACCC alleges a cartel existed, where businesses agreed to act together instead of competing, violating competition โlaws. This alleged conduct primarily relates to the โค’agile’ supply category,โฃ where โคsuppliers are required toโ submit weekly quotes for produce like broccoli, cauliflower, and icebergโ lettuce.
The suppliers involvedโค are:โค Veli Velisha Fresh Produce Pty Ltd (which ceasedโข operationsโข around june 2019โ following a sale to Velisha National farms), Velisha National Farms Pty Ltd, and M.โฃ Fragapane & Sons Pty Ltd (trading asโ Fragapane Farms).Veli Velisha Fresh Produce previously grew and supplied a wide range of produce including cauliflower, cucumber, โขbroccoli, iceberg lettuce, zucchini, spring onion and Brussels sprouts. velisha National Farms currently supplies cauliflower, cucumber, โbroccoli, iceberg lettuce,โฃ zucchini and spring onion to โฃVictoria, New South Wales, Queensland, South Australia and Tasmania. Fragapane Farms grows and supplies cauliflower, broccoli, iceberg lettuce, and celery to Victoria, Newโ South Wales, Queensland, South โaustralia and Western โAustralia.
The ACCC is seeking penalties for breaches of competition law. For conduct occurringโ before November 9, 2022, the maximum civil penalty for businesses โคis the greater of $10 million, โthree times the valueโ of any benefits obtained, or 10 per โcent of the company’s annual turnover during the 12 โขmonths ending when the alleged conduct โขoccurred. Individuals face a maximum penalty of $500,000 per contravention.
For conduct occurring after โขNovember 9,โข 2022, the penaltiesโข have increased significantly.The maximum civil penaltyโ for businesses isโ theโ greatest of $50โ million, three times the value ofโข any benefit obtained, or 30% of adjusted โขturnover during the breach period. Theโค maximum penalty for individuals โขis now $2.5 million per contravention.
The ACCC encourages โฃanyone with information about potential โคcartel conduct to contactโ the ACCC Cartel Immunity Hotlineโค on (02) 9230 3894 orโ to report anonymously via the ACCC’s online โฃcartel portal: https://accc-cartels.whispli.com/cartels?locale=en#refresh. Further information about cartels and the immunity process is available on the โคACCC website: https://www.accc.gov.au/business/competition-and-exemptions/cartels.