UNFI’s Market Power and Influence Over Small Suppliers
Anapol Weiss, in collaboration with Aaron Katz Law LLC and Wagstaff & Cartmell, LLP, has filed a class action lawsuit on behalf of NYSM Organics LLC and other similarly situated suppliers against United Natural Foods, Inc. (UNFI), one of the largest distributors of natural and organic foods in the United States. With a robust presence in the industry, UNFI operates over 50 distribution centers nationwide, servicing more than 30,000 customers and generating approximately $31 billion in annual revenue. This extensive market reach, along with a longstanding distribution relationship with major retailers like Whole Foods Market, grants UNFI significant influence over small suppliers, many of whom rely on UNFI as an essential distribution partner.
Alleged Deceptive Practices and Breach of Contract
The lawsuit alleges that UNFI uses its market dominance to apply numerous deductions and fees to suppliers’ invoices, significantly reducing the payments suppliers receive. UNFI is also accused of unlawfully taking “prompt payment” discounts on invoices even when payments are delayed, justifying these deductions by citing negative account balances that arise from UNFI’s own billing practices. This practice, the complaint claims, places an undue financial strain on small and emerging natural food brands, many of whom operate on narrow profit margins and rely on fair dealings to remain viable in a competitive market.
Class Action Seeks Relief for Affected Suppliers Nationwide
This proposed class action seeks to represent all food suppliers who have been similarly affected by UNFI’s invoicing practices. By challenging these alleged deceptive practices and breaches of contract, the plaintiff aims to highlight a pattern of conduct that harms smaller suppliers and, ultimately, impacts the natural food industry as a whole. The class, which would include all suppliers with similar agreements with UNFI, seeks redress for losses stemming from these practices and an end to UNFI’s alleged manipulation of payment terms.
Anapol Weiss’s Commitment to Fair Business Practices
Anapol Weiss and its co-counsel bring this suit to protect the rights of small suppliers in the natural food sector and to ensure that industry practices remain fair and transparent. The complaint seeks various forms of relief, including compensatory damages, restitution, and an injunction to prevent UNFI from continuing these practices. This case underscores Anapol Weiss's commitment to advocating for equitable business practices and holding powerful corporations accountable for actions that adversely affect smaller businesses and entrepreneurs across the industry.
Articles about the class action:
Grocery Dive, “UNFI improperly discounts payments to suppliers, lawsuit claims” (November 6, 2024)
Supermarket News, "UNFI accused of improperly taking supplier discounts in class-action complaint" (November 8, 2024), republished in Yahoo Finance (November 8, 2024).
