Perfection Fresh Admits to Fixing Vegetable Prices Sold to ALDI, Agrees to $8.44 Million Penalty

Key Takeaways

• Price-Fixing Admission: Perfection Fresh admitted fixing the prices of broccoli, cauliflower and iceberg lettuce supplied to ALDI in New South Wales on 11 occasions between 2019 and 2020.
• Proposed $8.44 Million Penalty: The company and the ACCC have agreed to recommend a penalty of approximately $8.44 million (A$12 million), subject to Federal Court approval.
• Penalty Scope: The proposed penalty covers nine contraventions and one attempted contravention. One additional admitted contravention falls outside the period for which a financial penalty can be imposed.
• Compliance Obligations: Perfection Fresh has agreed to continue implementing a competition law compliance program, subject to court approval.
• Proceedings Continue: The ACCC's case against three other vegetable suppliers and three individuals remains ongoing, with their liability yet to be determined.

Deep Dive

Perfection Fresh, Australia's second-largest fresh vegetable supplier, has admitted fixing the prices of broccoli, cauliflower and iceberg lettuce sold to ALDI in New South Wales on 11 occasions between 2019 and 2020, agreeing to a proposed penalty of $8.44 million (AUD $12 million).

The admission, announced Monday by the Australian Competition and Consumer Commission (ACCC), comes more than a year after the regulator brought Federal Court proceedings against four vegetable suppliers and three individuals over alleged cartel conduct.

Perfection Fresh has agreed to join the ACCC in recommending the penalty to the court, along with an order requiring the company to continue implementing a competition law compliance program. The proposed orders remain subject to judicial approval.

The company is among Australia's largest fresh produce wholesalers, supplying vegetables to every state and territory. Its admission concerns prices charged to ALDI for three common vegetables, although the regulator has not disclosed the prices involved or established whether the arrangements affected what consumers ultimately paid.

“Cartel conduct undermines competition and can increase prices, harming consumers and raising the cost of doing business,” ACCC Commissioner Luke Woodward said. “Enforcing cartel laws and protecting competition in the supply of fresh food are ongoing priorities for the ACCC.”

The ACCC commenced proceedings in September 2025, alleging that the suppliers and individuals had engaged in unlawful price fixing involving fresh vegetables supplied to ALDI. Perfection Fresh has now admitted its own participation, while the case against the remaining defendants continues.

Why the Proposed Penalty Covers Fewer Contraventions

Although Perfection Fresh admitted fixing prices on 11 occasions, the proposed financial penalty covers nine contraventions and one attempted contravention. According to the ACCC, one of the admitted contraventions falls outside the period for which a penalty can be imposed. The company and regulator have therefore agreed to seek the $8.44 million (A$12 million) penalty for the remaining conduct.

The Federal Court will determine whether that amount and the other proposed orders are appropriate. The agreement between Perfection Fresh and the ACCC does not itself impose the penalty.

The timing of the conduct is relevant to the court's assessment. Australia's competition laws were amended in November 2022 and March 2026, changing the maximum penalties available for violations. The applicable maximum penalties in this case depend on when the conduct occurred, rather than the rules in force when the court considers the proposed orders.

Perfection Fresh is based in New South Wales and distributes vegetables including broccoli, cauliflower, iceberg lettuce, Brussels sprouts, broccolini and celery. Its position in the national fresh produce market makes its admission particularly notable in a case concerning agreements over prices charged to a major supermarket retailer.

The ACCC has not provided details of how the price-fixing arrangements were reached, the individual prices involved or any financial benefit obtained by Perfection Fresh. Its announcement concerns conduct by the supplier and does not allege that ALDI participated in the cartel.

The regulator also amended its October 26 announcement to clarify the compliance obligations included in the proposed orders. Perfection Fresh would be required to continue implementing a competition law compliance program, rather than establish a new one.

The remaining proceedings involve three other suppliers and three individuals. Their liability has not been determined, and the ACCC said it would make no further comment while the case remains before the court.

Perfection Fresh's admissions leave the Federal Court with two matters still to resolve in the company's case, whether the proposed financial penalty is appropriate and whether to approve the accompanying orders. The allegations against the other defendants remain before the court.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey