Western Australian horticulture wholesaler Galati has paid $62,600 in penalties after the ACCC issued it with four infringement notices for alleged contraventions of the Horticulture Code.
The ACCC alleges that Galati breached the Code by trading with at least four growers without a horticulture produce agreement in place.
“A horticulture produce agreement must be in place before a grower and trader can start trading, as it sets out the key terms and conditions of their commercial relationship,” says ACCC Commissioner Mick Keogh.
The ACCC also alleges that Galati provided statements to growers which didn’t specify the quality of some produce as required by the Code.
“When traders haven’t put in place a written agreement that sets out the terms, quality parameters and what happens in the event of a dispute, growers are left without access to the full protections provided by the Code,” says Mr Keogh.
Galati also provided a court-enforceable undertaking which has been accepted by the ACCC, to implement a compliance program, and to ensure it has a signed agreement with, or written notice of acceptance of the terms of an agreement from each of its growers.
“It is important that industry codes of conduct in agriculture are enforced to protect the many small businesses operating in that sector,” says Mr Keogh.
The ACCC shifted from focusing on education and compliance activities to focusing on greater enforcement of the Code when it updated its guidance of the Horticulture Code in August 2022.
“We will continue to monitor traders’ compliance with their obligations under the Code and take appropriate enforcement action, when necessary,” says Mr Keogh.
The ACCC will conduct further industry education activities and provide traders with easy-to-understand guidance on the Code.
