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2011 AUSVEG National Convention

2011 AUSVEG National Convention. The Horticulture Code In Operation: An ACCC Update Dr Michael Schaper Deputy Chairman, ACCC Brisbane, Friday 15 April 2010. The Horticulture Code. Introduced May 2007 Emphasises price certainty and transparency – not what the price should be

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2011 AUSVEG National Convention

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  1. 2011 AUSVEG National Convention The Horticulture Code In Operation: An ACCC Update Dr Michael Schaper Deputy Chairman, ACCC Brisbane, Friday 15 April 2010

  2. The Horticulture Code • Introduced May 2007 • Emphasises price certainty and transparency – not what the price should be • Merchant vs agent • Exemptions (retailers, exporters, processors) • Horticulture produce agreement (HPA) • Dispute resolution procedure • ACCC Grocery Inquiry – recommendations for change

  3. The ACCC’s Role • Regulate Competition & Consumer Act (CCA) • Regulate industry codes prescribed under the CCA, including the Horticulture Code • Education is our primary focus – backed up by enforcement • Received over 80,000 complaints last year from all industries

  4. Complaints 2009 & 2010 Common allegations: • Trading without a horticulture produce agreement • Trading under a non-compliant HPA • Failing to agree on a price

  5. Horticulture Code – complaint outcomes, 2009 & 2010 • Insufficient evidence 11 • No breach 9 • Referred to mediation 4 • Warning letter to trader 2 • Court enforceable undertaking 1 27

  6. Priorities • Greatest overall benefit for consumers and businesses • Is there major consumer detriment? • …or blatant disregard for the law? • Is it substantial, or industry-wide? • What is the evidence of wrong-doing?

  7. Court is last resort • Mediation • Horticulture Mediation Adviser • www.hortcodema.com.au • 47 enquiries  5 mediations  4 settled, 1 partially settled • Administrative resolution • Court-enforceable undertaking • e.g. Galdan Investments • Litigation

  8. New powers & remedies • Investigation (audit) power: to ensure requisite information is kept • Public warning notices: alert businesses about a particular trader • Non-party redress: help get remedies/compensation for growers • NB: No financial penalties for Code breaches

  9. Conclusion • Evidence and industry feedback suggests overall compliance with Code is high • New powers & remedies have not changed our priorities • Growers & traders need to be aware of their rights and responsibilities • ACCC has variety of tools to help achieve this

  10. More Information ACCC website: www.accc.gov.au/horticulturecode Horticulture Mediation Adviser website: www.hortcodema.com.au Email: horticulturecode@accc.gov.au ACCC small business helpline: 1300 302 021 Assistance for industry groups: DVDs, information, magazine content, field officers

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