The Australian Competition and Consumer Commission (ACCC) has begun civil proceedings in the Federal Court against four fresh‑produce suppliers and three senior executives over alleged price‑fixing while supplying vegetables to Aldi stores across New South Wales, Victoria and Queensland.
The regulator says the conduct, alleged to have taken place between 2018 and 2024, involved prices for common household vegetables including broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts and zucchini.
The ACCC has named Perfection Fresh Australia Pty Ltd, Hydro Produce (Aust) Pty Ltd, Veli Velisha Fresh Produce Pty Ltd and Velisha National Farms Pty Ltd, and M. Fragapane & Sons Pty Ltd as the businesses involved. Two executives from Velisha — director and chief executive Catherine Velisha and senior sales manager Kaushik Vora — and M. Fragapane & Sons’ general sales manager Roberto Nave are also defendants.
“Cartel conduct, whether by coordinating prices or agreeing on terms of bids with competitors, is anti-competitive, and is illegal,” ACCC Chair Gina Cass‑Gottlieb said. “Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly.” “In this instance, we allege that price fixing conduct involving some essential household vegetables took place across three states,” Ms Cass‑Gottlieb said. “Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers.”
The ACCC alleges that on 28 occasions two or more of the suppliers made, or attempted to make, arrangements or understandings with the purpose, effect or likely effect of fixing, controlling or maintaining the price of the listed vegetables. It also alleges that on 48 occasions one or more suppliers submitted prices to ALDI in accordance with those arrangements.
Perfection Fresh Australia is described by the ACCC as a New South Wales‑based wholesaler and the country’s second largest fresh‑vegetable supplier, while Hydro Produce is a grower and wholesaler with farms in every state. Veli Velisha ceased operations around June 2019 after its business was sold to Velisha National Farms; the latter supplies produce across at least five states. Fragapane Farms is a Victorian grower and supplier that sells to multiple states.
ALDI divides supply arrangements into three categories — agile, standard and fixed cost — with agile pricing requiring weekly quotes. The ACCC says the allegations predominantly relate to agile supplying, which ALDI uses for vegetables including broccoli, cauliflower and iceberg lettuce.
The regulator is seeking declarations, civil penalties, compliance orders and costs against the businesses, and declarations, civil penalties, disqualification orders, non‑indemnification orders and costs against the individuals.
“The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate,” Ms Cass‑Gottlieb said.
Penalties for cartel contraventions were increased from 9 November 2022. For conduct before that date the maximum civil penalty for a corporation was the greater of $10 million, three times the value of benefits obtained, or 10 per cent of annual turnover; the maximum for individuals was $500,000. For conduct after 9 November 2022 the maximum for corporations is the greatest of $50 million, three times the attributable benefit or 30 per cent of adjusted turnover; the maximum for individuals is $2.5 million.
The ACCC said it continues to detect alleged cartels through education, intelligence gathering, data assessment and international co‑operation, and urged anyone who believes they may be involved in alleged cartel conduct to contact its Cartel Immunity Hotline or use its anonymous cartel portal.
