A leading trade body has hit out at the Competition Commission (CC) and government for dilly-dallying over the introduction of a grocery ombudsman, and accused supermarkets of cynical exploitation of consumer fears.
Association of Convenience Stores (ACS) chief executive James Lowman is calling upon the government to act on the recommendations that emanated from the CC’s investigation into the grocery market and has written to MPs calling for parliamentary scrutiny.
Lowman said: “We are seeking support from across the political spectrum in an effort to combat the delays and prevarication over the implementation of an ombudsman. A new ombudsman is vital to creating a sustainable and diverse market that delivers for consumers.”
Last week, Asda chief executive complained that the creation of a retail ombudsman could lead to strained relationships between supermarkets and suppliers, and claimed that an ombudsman would favour suppliers and cause disruptive "one-way traffic".
Rather confusingly, as no ombudsman has been selected or appointed, Bond said: "We've become increasingly concerned that the ombudsman will not be sufficiently qualified to understand the way the market works."
The proposal for a grocery ombudsman came after a two year investigation by the expert panel convened by the CC. Since making its recommendations, said ACS, the implementation has been delayed and undermined because:
•the CC has no power to enforce the ombudsman and instead has to get voluntary agreement with the main supermarket groups;
•the CC has stated that if no agreement is reached then it would recommend to government to impose the ombudsman through legislation, but
•the government has been equivocal about what they will do if such a recommendation for an ombudsman is made.
Lowman said: “Government has failed to take a lead in this process and as such have allowed uncertainty and delay to undermine the chance for a fairer and more diverse market. Having received the recommendations of a detailed and extensive inquiry there is no justification for the government not driving forward the implementation of a remedy put forward by the independent competition authorities.
“Some of the supermarket companies have sought to convince government, the media and politicians that the ombudsman will limit their ability to keep food prices low for consumers. This is not true; and is a cynical exploitation of consumer fears. The costs of an ombudsman are small, and the restrictions designed to remove the worst abuses of buying power that all leading companies disavow.”
ACS is urging MPs to write to the secretary of state to demand action and also to sign up to Early Day Motion 2030. Lowman concluded: “This action is a crucial part of our campaign for a fairer grocery market.”
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