Think your weekly shop has been unfairly expensive? These suppliers allegedly made sure of it
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Four of Australia’s biggest fruit and vegetable suppliers were accused of secretly plotting to inflate supermarket prices—leaving shoppers unknowingly paying more at the checkout.
The case has landed ALDI in the spotlight, despite the chain itself not being accused of any wrongdoing.
Now, the consumer watchdog has taken the suppliers to court, alleging years of collusion behind the scenes.
The Australian Competition and Consumer Commission (ACCC) launched a civil case in the Federal Court against Perfection Fresh Australia, Hydro Produce Australia, Veli Velisha Fresh Produce and Velisha National Farms.
According to court documents, the suppliers allegedly held secret discussions to fix the prices of fresh produce sold in ALDI stores across New South Wales, Victoria and Queensland.
The allegations centred on vegetables including broccoli, cauliflower, iceberg lettuce, cucumber, brussels sprouts and zucchini.
The ACCC claimed the suppliers attempted to make or did make price-fixing arrangements on at least 28 occasions, while presenting a false front of competition.
Between 2018 and 2024, the businesses were accused of submitting agreed prices to ALDI on 48 occasions.
ALDI reportedly used those submissions to set prices for key produce lines such as broccoli, cauliflower and lettuce.
The watchdog alleged this practice forced Australians to pay inflated prices for six years.
Specifically named in the case were the CEO of Velisha National Farms, its senior sales manager, and the general manager of Fragapane Farms.
ACCC chair Gina Cass-Gottleib said such practices damaged competition and left consumers worse off.
‘Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers,’ she said.
‘The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate.’
ALDI confirmed it was aware of the allegations but stressed it was not a target of the investigation.
‘ALDI is not the subject of these allegations, nor has ALDI been investigated for any potential wrongdoing,’ a spokesperson shared..
‘We understand this is an ongoing legal matter before the courts and therefore we cannot comment any further.’
If proven, the breaches could carry enormous financial penalties.
For offences before 9 November 2022, companies faced a maximum fine of $10 million, three times the total benefit obtained, or 10 per cent of annual turnover.
For breaches after that date, the penalty rose sharply to whichever was greater of $50 million, three times the benefit, or 30 per cent of adjusted turnover.
Individuals could also face fines of up to $500,000 per breach before November 2022 and $2.5 million afterwards.
If this case left you questioning whether your grocery bills were fair, you’re not alone.
Shoppers have been noticing more and more sneaky increases on the shelves, and it’s sparked plenty of frustration.
One recent example shows just how strongly people react when a favourite item suddenly costs more.
Read more: You’ve watched prices rise for years—but this one’s left shoppers fuming
For shoppers who thought they were getting a bargain, the case raised a troubling question—how many other hidden deals were shaping the price of their weekly groceries?
The case has landed ALDI in the spotlight, despite the chain itself not being accused of any wrongdoing.
Now, the consumer watchdog has taken the suppliers to court, alleging years of collusion behind the scenes.
The Australian Competition and Consumer Commission (ACCC) launched a civil case in the Federal Court against Perfection Fresh Australia, Hydro Produce Australia, Veli Velisha Fresh Produce and Velisha National Farms.
According to court documents, the suppliers allegedly held secret discussions to fix the prices of fresh produce sold in ALDI stores across New South Wales, Victoria and Queensland.
The allegations centred on vegetables including broccoli, cauliflower, iceberg lettuce, cucumber, brussels sprouts and zucchini.
Suppliers accused of fixing fresh food prices. Image source: Pexels/Polina Tankilevitch | Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
The ACCC claimed the suppliers attempted to make or did make price-fixing arrangements on at least 28 occasions, while presenting a false front of competition.
Between 2018 and 2024, the businesses were accused of submitting agreed prices to ALDI on 48 occasions.
ALDI reportedly used those submissions to set prices for key produce lines such as broccoli, cauliflower and lettuce.
The watchdog alleged this practice forced Australians to pay inflated prices for six years.
Specifically named in the case were the CEO of Velisha National Farms, its senior sales manager, and the general manager of Fragapane Farms.
ACCC chair Gina Cass-Gottleib said such practices damaged competition and left consumers worse off.
‘Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers,’ she said.
‘The ACCC continues to prioritise investigating allegations of cartel behaviour and will bring enforcement action where appropriate.’
ALDI confirmed it was aware of the allegations but stressed it was not a target of the investigation.
‘ALDI is not the subject of these allegations, nor has ALDI been investigated for any potential wrongdoing,’ a spokesperson shared..
‘We understand this is an ongoing legal matter before the courts and therefore we cannot comment any further.’
If proven, the breaches could carry enormous financial penalties.
For offences before 9 November 2022, companies faced a maximum fine of $10 million, three times the total benefit obtained, or 10 per cent of annual turnover.
For breaches after that date, the penalty rose sharply to whichever was greater of $50 million, three times the benefit, or 30 per cent of adjusted turnover.
Individuals could also face fines of up to $500,000 per breach before November 2022 and $2.5 million afterwards.
If this case left you questioning whether your grocery bills were fair, you’re not alone.
Shoppers have been noticing more and more sneaky increases on the shelves, and it’s sparked plenty of frustration.
One recent example shows just how strongly people react when a favourite item suddenly costs more.
Read more: You’ve watched prices rise for years—but this one’s left shoppers fuming
For shoppers who thought they were getting a bargain, the case raised a troubling question—how many other hidden deals were shaping the price of their weekly groceries?
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