Perfection Fresh and three other companies that supplied fresh vegetables to Aldi are facing civil proceedings filed by the competition regulator over alleged cartel conduct.
The produce suppliers in question include Perfection Fresh Australia, Hydro Produce, Veli Velisha Fresh Produce and Velisha National Farms, and M Fragapane & Sons.
In the proceedings filed at the Federal Court, the Australian Competition and Consumer Commission (ACCC) said the alleged cartel conduct involved price fixing in the supply of fresh produce to Aldi stores in NSW, Victoria and Queensland between 2018 and 2024.
According to the regulator, two or more of the suppliers “made, or attempted to make, arrangements or understandings that had the purpose, effect or likely effect of fixing, controlling or maintaining the price of broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts or zucchini” on 28 occasions.
The ACCC also alleges that one or more of the suppliers then submitted prices to Aldi in accordance with these arrangements on 48 occasions.
“Cartel conduct, whether by coordinating prices or agreeing on terms of bids with competitors, is anti-competitive, and is illegal,” said ACCC chair Gina Cass-Gottlieb.
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly.”
The ACCC is seeking declarations, civil penalties, compliance orders and costs against the businesses.
In July, New Zealand’s Commerce Commission commenced civil proceedings against Foodstuffs North Island and Gilmours Wholesale for cartel conduct regarding the supply of products to a hospitality customer.
