Groceries Code Adjudicator

Last updated

Groceries Code Adjudicator
Ombudsman overview
Formed25 June 2013;11 years ago (2013-06-25) [1]
Jurisdiction
Headquarters7th Floor, The Cabot
25 Cabot Square
Canary Wharf
London
E14 4QZ
United Kingdom [3]
Employees4.6 full time equivalents [4]
Ombudsman executive
  • Mark White, Groceries Code Adjudicator [3]
Parent department Department for Business and Trade
Website gov.uk/government/organisations/groceries-code-adjudicator OOjs UI icon edit-ltr-progressive.svg

The Groceries Code Adjudicator (or Supermarket Ombudsman [5] ) is an independent statutory office established to enforce the Groceries Supply Code of Practice and to regulate the relationship between supermarkets and their direct suppliers within the United Kingdom. The post was created by the Groceries Code Adjudicator Act 2013 and is an independent office within the Department for Business and Trade.

Contents

The UK Competition Commission (as of 1 April 2014 the Competition and Markets Authority or CMA) undertook an investigation of grocery retail in 2009, and recommended that government establish an ombudsman for the sector. [6] The Groceries Supply Code of Practice applied initially to ten retailers with an annual turnover of £1bn+, namely Tesco, Co-op, Sainsbury’s, Marks and Spencer, Asda, Lidl, Morrisons, Aldi, Waitrose, and Iceland. On 9 February 2022, the CMA announced that Amazon.com would also be included with effect from 1 March 2022. [7]

Trade magazine and website Retail Week reported that in response to calls for submissions to the Competition Commission investigation, major UK retailer Aldi supported the establishment of a retail ombudsman, while Tesco, Sainsbury's, and a number of other major retailers did not support its establishment. [8]

In January 2013 Christine Tacon was appointed to the role for a four-year period. [9] Mark White, the current adjudicator, was appointed in October 2020. [10]

The Adjudicator publishes interpretative guidance on the Code of Practice, best practice statements and details of retailers' voluntary commitments [11] and arbitrates in disputes between retailers and suppliers.

Investigations

Christine Tacon's first investigation, announced on 5 February 2015, looked into the supply chain activities of Tesco plc. [12] The investigation found that Tesco had breached the delayed payment provisions of the Code, but in respect of the rule that no payments should be required from suppliers for better positioning of goods unless in relation to promotions, no evidence of a breach was found. [13]

In her work on the Tesco investigation, Tacon identified problems with "drop and drive deliveries" as one of her top five issues, because they can be a cause of delay in payments to suppliers for goods received. "Drop and drive" disputes involve deductions made in supplier payments because of "alleged discrepancies" in delivered quantities. [14] As a result, work was undertaken with a group of 20 supermarket suppliers and consultancy firm Simply Supply Chain, which highlighted concerns regarding inaccurate claims being made by the supermarkets. As of February 2015 the GCA withdrew from handline concerns over the drop and drive issue so that an industry-led solution could emerge. [15] Morrisons and Asda later introduced a "Good Faith Receiving" process, under which they agreed to pay suppliers for all drop and drive deliveries, using spot check audits to ensure accuracy, and the Co-op had agreed to pay all drop and drive delivery invoices in full and settle any disputes later by mutual agreement. [14]

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References

  1. ↑ "Groceries Code Adjudicator powers come into force". Practical Law. Thomson Reuters. 27 June 2013. Retrieved 21 July 2021.
  2. ↑ "Groceries Code Adjudicator Act 2013, section 24". legislation.gov.uk. The National Archives. 2013. Retrieved 21 July 2021.
  3. 1 2 "Groceries Code Adjudicator". GOV.UK. Retrieved 21 July 2021.
  4. ↑ Groceries Code Adjudicator Annual Report and Accounts 2020-2021 (PDF). Dandy Booksellers Limited. 25 June 2021. ISBN   978-1-5286-2606-4 . Retrieved 21 July 2021.{{cite book}}: |website= ignored (help)
  5. ↑ "Christine Tacon named as supermarket ombudsman". BBC News . 21 January 2013. Retrieved 7 August 2023.
  6. ↑ "Competition Commission calls for retail ombudsman". The Daily Telegraph . 4 August 2009. Retrieved 20 April 2014.
  7. ↑ "Notice of Designation for Amazon.com Incorporated". GOV.UK. Retrieved 7 August 2023.
  8. ↑ Faithfull, Mark (5 June 2009). "Waitrose gives last-minute show of support for retail ombudsman". Retail Week . Emap International Limited . Retrieved 20 April 2014.
  9. ↑ "Christine Tacon CBE". GOV.UK. Retrieved 7 August 2023.
  10. ↑ Groceries Code Adjudicator, GCA responds to reappointment, published on 24 May 2024, accessed on 26 June 2024
  11. ↑ "GCA policy: Interpretative guidance, best practice statements and retailer voluntary commitments" (PDF). GOV.UK . March 2016. Retrieved 7 August 2023.
  12. ↑ "Tesco knowingly delayed payments to suppliers". BBC News. 26 January 2016. Retrieved 7 August 2023.
  13. ↑ Groceries Code Adjudicator, GCA Investigation into Tesco plc, published 26 January 2016, accessed 23 May 2024
  14. 1 2 Quinn, I., GCA calls off 'drop and drive' investigation threat, The Grocer , published on 31 August 2017, accessed on 26 June 2024
  15. ↑ Groceries Code Adjudicator, Making Progress on Delays in Payment resulting from Drop and Drive, published on 5 February 2015, accessed on 26 June 2024
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