The Australian Competition and Consumer Commission has accepted court enforceable undertakings from LaManna Bananas Pty Ltd, on behalf of the LaManna Group companies, over horticulture produce transactions within the group.
The undertakings secure a special notification and dispute resolution process for growers potentially affected by certain transactions involving the LaManna Group companies.
Acting as growers' agents, the LaManna Group occasionally sold produce between their companies, as part of their distribution of produce across national markets.
The ACCC raised concerns that these transactions were not at arm's length and that the companies may not have, in every case, properly obtained growers' consent, as required under the Horticulture Code of Conduct.
LaManna Bananas Pty Ltd, on behalf of the LaManna Group companies, has undertaken that it will advise potentially affected growers of the ACCC's concerns. It will establish a special process to deal with any growers who raise concerns about sales of their produce.
LaManna will also report to the ACCC on any grower's complaint that it could not resolve under that process. It will implement a trade practices law compliance program to help it avoid future code breaches.
"Horticulture produce traders should be aware that the ACCC will not hesitate to act on suspected breaches of the horticulture code," ACCC Chairman, Mr Graeme Samuel, said today. "In this case, I am pleased to say that LaManna responded quickly and appropriately when we raised these concerns with them."
The Horticulture Code is a mandatory code under the Trade Practices Act 1974.
The undertakings accepted by the ACCC do not affect the general dispute resolution rights held by growers under the code.