ACCC cautions traders and growers pre-dating farm produce supply agreements

The Australian Competition and Consumer Commission has been made aware of alleged attempts by some wholesale traders to avoid their obligations under the Horticulture Code which becomes law on 14 May 2007.

"These attempts are in the form of allegedly inducing growers to enter contracts backdated as if they were entered into, on or before the 14 December 2006 which is the cut-off date for contracts that would not be subject to the new Horticulture Code provisions," ACCC Chairman, Mr Graeme Samuel, said today.

Traders attempting to backdate contracts in this manner risk contravening the Horticulture Code of Conduct should these contracts not comply fully with the code.

Traders who induce growers into entering such contracts also risk engaging in misleading or deceptive conduct if they wrongly give the impression to growers that they will not enjoy the benefits delivered by the code.

"Traders cannot choose to 'opt out' of their legal obligations under the Horticulture Code," Mr Samuel said. "Growers and traders should seek independent advice before signing any agreements - particularly if one of the parties presents them with an agreement that has been backdated."

The ACCC regards any attempts to deliberately disregard the horticulture code very seriously and is currently investigating the complaints that have been received. The ACCC encourages any grower who has been induced to enter into a predated agreement to contact the ACCC on 1300 302 502. All complaints are treated confidentially.

Background

The mandatory Horticulture Code introduced by the Australian Government into the Trade Practices Act 1974, aims to provide clarity and transparency in trade between growers and wholesaler traders of horticulture produce by clarifying the responsibilities of each. On 14 May 2007 the Trade Practices (Horticulture Code of Conduct) Regulations 2006 will have the force of law on all horticulture produce agreements entered into on or after the 15 December 2006. The ACCC carries the role of promoting compliance with the code and the Trade Practices Act 1974 through education, access to information and where necessary enforcement action.