Groceries Code Adjudicator to be given greater powers

Posted 06/12/2012

Competition minister Jo Swinson has announced that the new Groceries Code Adjudicator will be given greater powers to fine large supermarkets who deal with suppliers unfairly.

In a change likely to be widely welcomed by suppliers and farmers, the department for Business Innovation and Skills (BIS) has taken on board the concerns of stakeholders that more should be done to protect suppliers from unfair treatment.

Jo Swinson said, “… where supermarkets are breaking the rules with suppliers and treating them unfairly, the Adjudicator will make sure that they are held to account. We have heard the views of the stakeholders who were keen to give the Adjudicator a power to fine, and recognise that this change would give the Adjudicator more teeth to enforce the Groceries Code.

“We expect fines to be used as a last resort, but the fact that the Adjudicator has the power to impose them will send a strong message to retailers that compliance with the Code is not optional. I am confident that these changes will mean that the Adjudicator is able to ensure fair play in the food supply chain and keep the industry growing”.

The Adjudicator is being set up through the Groceries Code Adjudicator Bill which was announced in the Queens Speech on 10 May 2012 and is currently passing through Parliament.

Read more about the Bill here.

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