Four food suppliers to supermarket giant Aldi have been accused of holding secret discussions to fix high prices for fresh produce.
The n Competition and Consumer Commission (ACCC) has launched a civil case against the four suppliers in the Federal Court.
Documents allege Perfection Fresh , Hydro Produce , Veli Velisha Fresh Produce and Velisha National Farms broke ‘s cartel laws.
ACCC claimed two or more of the suppliers made, or attempted to make, arrangements on 28 occasions to affect prices. Aldi was unaware of the suppliers’ discussions and is not accused of any wrongdoing
The businesses allegedly colluded to increase the price of fresh produce, including broccoli, cauliflower, iceberg lettuce, cucumber, brussels sprouts and zucchini, in Aldi stores across NSW, Victoria and Queensland.
ACCC claimed the suppliers submitted agreed upon prices to Aldi, while maintaining a facade of competition, on 48 occasions between 2018 and 2024.
Aldi used those submissions to price broccoli, cauliflower and iceberg lettuce.
The consumer watchdog is suing the companies for millions of dollars and alleged the agreement had seen Aussies pay higher prices for fresh produce for six years.
Specifically named in the ACCC’s case were the CEO of Velisha National Farms along with its senior sales manager, as well as the general manager of Fragapane Farms.
ACCC chair Gina Cass-Gottleib explained when businesses work together instead of competing, it drives up prices for consumers.
‘Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of n consumers,’ she said.
‘The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate.’
An Aldi spokesperson told News Corp it was ‘aware of the allegations’.
‘Aldi is not the subject of these allegations, nor has Aldi been investigated for any potential wrongdoing,’ they said.
‘We understand this is an ongoing legal matter before the courts and therefore we cannot comment any further.’
If the court agrees with the allegations connected to price fixing it could order a maximum civil penalty against the business of the greater of $10million, three times the total value of benefit obtained, or 10 per cent of annual turnover.
The would be connected to breaches before November 9, 2022, but for breaches after the November 2022 date the penalty increases.
Every contravention could draw a fine of whichever is greater of a $50million fine, or three times the value of the ‘reasonably attributable’ benefit from misconduct, or 30 per cent of adjusted turnover.
Individuals found to have breached the rules could be personally fined up to $500,000 fines for each breach before November 9, 2022, and $2.5m after that.