Perfection Fresh seeks $8M penalty over price fixing case
by@Reuters
Summary
Perfection Fresh Pty, Australia's second-largest vegetable supplier, has admitted to engaging in price fixing of vegetables sold to ALDI and will jointly seek a proposed penalty of A$12 million ($8.43 million) with the Australian Competition and Consumer Commission (ACCC). This price fixing involved broccoli, cauliflower, and iceberg lettuce on 11 occasions between 2019 and 2020. The ACCC noted that the penalty addresses nine contraventions and one attempted contravention of Australia’s competition laws. Following this admission, Perfection Fresh has also taken steps to enhance its leadership, governance, and compliance systems. The final decision regarding the proposed penalty will be made by the Federal Court at a later date.
Analysis
Perfection Fresh: Perfection Fresh Pty is Australia's second-largest vegetable supplier, distributing produce including broccoli, cauliflower, and iceberg lettuce to major retailers such as ALDI. The company admitted to engaging in price fixing on multiple occasions in New South Wales during 2019 and 2020, leading to an agreement with the competition regulator to jointly seek court approval for penalties. It has responded by strengthening its leadership, governance, and compliance systems. Regulatory Action: Australia's competition regulator has secured an admission and proposed penalty agreement from a major vegetable supplier for contraventions of competition laws involving retailer supply contracts. Corporate Compliance: The supplier has implemented enhanced governance measures following its acknowledgment of past pricing practices.
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macro