The Australian Competition and Consumer Commission has begun proceedings in the Federal Court, Darwin against Grove & Edgar Pty Ltd, a horticulture produce trader based at the Sydney Produce Markets, for alleged breaches of the mandatory Horticulture Code of Conduct*.
The ACCC alleges that during October and November 2007, Grove & Edgar failed to agree in writing with three Northern Territory mango growers the price to be paid for each of the growers produce either before or immediately upon delivery of the mangoes.
The ACCC also alleges, in respect of its trade with one Northern Territory mango grower, Grove & Edgar agreed a price range to be paid for mangoes, instead of an amount.
The ACCC seeks:
- declarations the alleged conduct contravened the Trade Practices Act 1974
- an injunction requiring Grove & Edgar, when agreeing to purchase horticulture produce as a merchant under a Horticulture Produce Agreement pursuant to the code, to agree with each grower:
- - the price to be paid by Grove & Edgar for the purchase of the grower's produce, not a price range or a method for calculating an amount; and
- - in writing either before, or immediately upon, delivery of the grower's produce to Grove & Edgar the amount to be paid for the produce.
- an order requiring Grove & Edgar send a letter to each of its growers advising the outcomes of the ACCC's court proceedings and notifying growers entering into Horticulture Produce Agreements with Grove & Edgar of its commitment to agree in writing an amount to be paid for produce consistent with the requirements of the code, and
- costs.
A directions hearing will be held in the Federal Court, Darwin, before Justice Reeves at 9:30 a.m. on 15 July 2008.