ACCC Horticulture Code enforcement: Record penalties signal tougher compliance expectations

The ACCC’s latest enforcement action against Fruitico and Fresh Express signals a clear shift from education to enforcement in the horticulture sector.

Both traders have paid record infringement notice penalties for alleged breaches of the Horticulture Code of Conduct. The ACCC has positioned this as a benchmark case and is simultaneously calling for a stronger Code—indicating tougher enforcement lies ahead.

For agribusinesses, the issue is not simply the size of the penalties, but what they represent: a shift in how the Code is being applied and the level of discipline now expected in day-to-day trading practices.

What happened in the Fruitico and Fresh Express case?

The ACCC issued multiple infringement notices to Fruitico and Fresh Express relating to alleged breaches of core obligations under the Horticulture Code, including:

• trading without compliant Horticulture Produce Agreements (HPAs) in place;
• failures relating to terms of trade transparency and disclosure; and
• non-compliance with prescribed documentation and trading processes.

These are fundamental requirements—not technicalities. A compliant written HPA is the cornerstone of the Code, designed to ensure clarity, transparency and fairness in grower–trader dealings.

The ACCC has emphasised that trading without a compliant HPA, or outside its terms, is a primary enforcement trigger.

What makes this development particularly notable is that the combined penalties are reported to be the largest issued under the Code to date, exceeding earlier infringement outcomes. The intention is to create strong messaging about deterrence and industry-wide compliance.

Why ACCC enforcement is increasing in the horticulture sector

This action is not isolated. It reflects a broader shift by the ACCC from industry education to active enforcement and deterrence in horticulture. Key indicators include:

• increased funding and political focus on enforcement;
• regular compliance audits and investigations targeting traders;
• a willingness to pursue higher penalties as a deterrent strategy;
• a policy intent to ensure growers receive the full protections of mandatory industry codes; and
• a current independent review of the Horticulture Code (2026), with potential reforms on the horizon.

In practical terms, the ACCC is no longer asking whether the industry understands the rules—it is testing whether businesses are actually complying with them.

Key compliance risks under the Horticulture Code for agribusinesses

1. “Business-as-usual” practices are becoming less defensible
Practices that may have previously attracted limited regulatory attention (eg, informal trading arrangements or outdated agreements) now present material enforcement risk.

Even short-term or trial supply arrangements need to be documented. Systemic or process-driven failures can attract financial penalties.

2. Documentation gaps are high-risk
The Code is heavily documentation-driven. Key risks include:

• absence of a written HPA prior to supply;
• HPAs that do not address mandatory terms (e.g. pricing methodology, payment timing); and
• failure to publish or maintain accessible terms of trade.

3. Supply chain complexity increases exposure
Many traders operate across multiple growers, products and trading models. This creates:

• variability in agreements;
• increased risk of non-uniform or non-compliant terms; and
• difficulty maintaining consistent processes across teams and locations.

The ACCC is increasingly focused on systemic compliance failures, not just isolated incidents.

4. Reputational and commercial consequences
Beyond penalties, enforcement action can lead to:

• loss of grower trust;
• contract renegotiations or disputes; and
• increased scrutiny from financiers and counterparties.

These impacts can outweigh the cost of the penalty itself.

Legal and practical takeaways

There are some clear, immediate steps that relevant agribusinesses should consider, including:

1. Treat the HPA as a compliance priority, not a formality

• Ensure a signed, current HPA is in place before supply commences;
• Audit existing agreements for compliance against Code requirements; and
• Align operational practices with what the HPA actually provides.

2. Embed compliance into operational processes

• use standardised agreement templates;
• introduce onboarding controls (i.e., no purchase order without a HPA);
• conduct periodic compliance checks; and
• conduct train sales, procurement and finance teams.

3. Prepare for a stronger Code
With the current government review underway, further reforms may include:

• expanded transparency obligations;
• increased penalty settings; and
• greater enforcement powers.

Businesses should expect higher compliance obligations on the horizon.

Get in touch

If you need support reviewing your Horticulture Produce Agreements or strengthening your compliance processes, our Agribusiness lawyers can help.

Contact our team today for advice.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.