The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings in the Federal Court against four fresh produce suppliers and three senior executives over allegations of price fixing of vegetables supplied to supermarket chain Aldi.
The suppliers under scrutiny are Perfection Fresh Australia, Hydro Produce (Australia), Veli Velisha Fresh Produce and Velisha National Farms, and M Fragapane & Sons.
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The implicated businesses are significant suppliers of fresh vegetables across Australia, with Perfection Fresh Australia the country’s “second-largest” supplier.
The commission noted that “price fixing allegations in this case are predominantly in relation to agile supplying”.
The ACCC claims that between 2018 and 2024, these parties engaged in cartel conduct, specifically price fixing, during the supply of broccoli, Brussels sprouts, cauliflower, courgettes, cucumber and iceberg lettuce in New South Wales, Victoria and Queensland.
ACCC chair Gina Cass-Gottlieb stated: “Cartel conduct, whether by coordinating prices or agreeing on terms of bids with competitors, is anti-competitive, and is illegal.
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By GlobalData“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly.”
The authority also states that two or more suppliers arranged or attempted to fix prices on 28 separate occasions, while one or more suppliers were accused of submitting prices to Aldi that were in line with the agreements on 48 occasions.
Cass-Gottlieb added: “In this instance, we allege that price fixing conduct involving some essential household vegetables took place across three states.
“Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers.”
The commission is pursuing legal action to obtain court declarations, financial penalties and orders for compliance against the companies.
The ACCC also aims to secure court declarations, financial penalties, orders barring individuals from corporate management positions, orders preventing indemnification of those individuals and the recovery of legal expenses.
Cass-Gottlieb concluded: “The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate.”
