Freshmax admits Fair Trading Act breach

Fruit and produce wholesaler Freshmax has admitted breaching the Fair Trading Act by not disclosing a charge to growers.

A Commerce Commission investigation found Freshmax introduced a warehousing fee of 50c a unit through its Auckland wholesale warehouse in 2001.

But the company had not adequately disclosed this to growers and simply deducted it from the selling price of the produce.

The charge was not specifically introduced into the company's terms and conditions until September 2002 and not notified in writing until November last year.

Commission director of fair trading Deborah Battell said growers could have been misled about the price of the service Freshmax was providing.

Freshmax admitted the breach as part of a settlement with the commission.