The Australian Competition and Consumer Commission (ACCC) recently initiated proceedings against, Mitolo Group Pty Ltd, Australia’s largest potato wholesaler, and its related entity, for alleged unfair contract terms with its farmers.
The alleged unfair terms, in its standard form contracts, include:
1. unilaterally determining or varying the price of potatoes that customers pay ;
2. declaring potatoes as 'wastage' without a mechanism for proper review; and
3. preventing customers from selling potatoes to alternative purchasers.
For the ACCC, this is the first proceedings under the new Horticulture Code.
Since the inception of the Unfair Contract Provisions on 12 November 2016, the ACCC has taken action against a number of entities, in different industry. Should you require any assistance in reviewing and/or amending your contract’s terms and conditions, please contact John Fairgray or Luis Ormazabal.