Grape Co in the Sunraysia hit with huge fines by ACCC

A Sunraysia table grape-growing family has been fined more than $34,000 for making misleading claims about the origins of its grapes — as well as breaching the Horticulture Code of Conduct.

Alleged misleading place of origin on Grape Co website. Picture: Supplied/ACCC

A family-run table grape growing business in the Sunraysia has been fined more than $34,000 by the Federal Government’s consumer watchdog.

Grape Co Australia and Grape Co Farms, owned by Frank and Adrian Caia, were fined $34,920 after the Australian Competition and Consumer Commission issued three infringement notices alleging Grape Co made false or misleading representations about grape origins and failed to comply with the Horticulture Code of Conduct.

The Caias supply table grapes to domestic and international markets under the Grape Co label.

According to the ACCC, Grape Co Australia claimed on its website “every single one of our grapes is personally hand-selected from the finest fruit on our family’s estate in Sunraysia Australia” which the ACCC considered represented that all grapes are grown on the Grape Co Australia family estate.

However, some Grape Co Australia branded grapes are grown on third party growers’ properties.

After investigating the matter, the ACCC issued one infringement notice to Grape Co Australia for allegedly making false and misleading representations on its website in relation to the origin of the grapes sold, in breach of the Australian Consumer Law.

Grape Co Australia has since amended its website to reflect the true origins of grapes marketed to consumers.

The ACCC also fined Grape Co Farms $21,600 for alleged contraventions of the Horticulture Code.

The ACCC alleges Grape Co Farms traded without written Horticulture Produce Agreements when acting as an agent for grape growers, and failed to prepare, publish and make publicly available a document that set out its terms of trade.

ACCC deputy chair Mick Keogh said food producers must ensure they do not mislead consumers with marketing statements about the place of origin of goods or produce.

“This not only impacts consumers, but can also prevent other businesses who are careful about being accurate in their marketing from competing on a level playing field,” Mr Keogh said.

“It is important that traders have written agreements with growers so that both parties clearly understand their rights and obligations and what can and can’t be done under the agreement.

“Terms of trade allow growers to understand the services and aspects of trading provided by different traders, so that growers can make an informed decision as to who they wish to supply produce to.”

In addition to paying the fines, Grape Co Farms agreed to amend a number of terms in its standard form agreements considered by the ACCC to likely be unfair contract terms.

Some of the terms that have changed related to the ability for Grape Co Farms to unilaterally vary the agreement or unilaterally terminate the agreement with a short notice period, as well as Grape Co Farms’ ability to withhold part payments.

Grape Co Australia have been contacted for comment.

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