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Supermarket adjudicator to investigate disputes
A new adjudicator is to be set up to resolve disputes between farmers, suppliers and supermarkets, the Government has announced.
It follows an investigation by the Competition Commission, which suggested that small suppliers were being treated unfairly by large supermarket chains.
The Groceries Code Adjudicator (GCA) will sit within the Office of Fair Trading, although it will remain independent.
It will enforce the Groceries Supply Code of Practice (GSCOP) and investigate complaints from UK and overseas suppliers, who will be able to remain anonymous.
The Government hopes that the new body will be established within the next 18 months to two years.
Consumer Minister Edward Davey said: ‘We want to make sure that large retailers can't abuse their power by transferring excessive risks or unexpected costs onto their suppliers.’
He added: ‘These sorts of pressures are bad for producers and bad for consumers - ultimately they can lead to lower quality goods, less choice and less innovation. The adjudicator will be able to step in to prevent unfair practices continuing – ensuring a fair deal for producers and safeguarding the consumer interest.’
However, the British Retail Consortium (BRC) has criticised the move, arguing that the new adjudicator is an unnecessary ‘quango’.
‘An adjudicator will just add unnecessary costs,’ said BRC Director General, Stephen Robertson. ‘With an independent budget and no direct reporting line to the OFT or Government, this is a quango. Quango's cost. This will reduce the efficiency of the supply chain and customers will pay the price.’