As the groceries code adjudicator bill enters its second reading in Parliament today, government must introduce fines to penalise supermarkets that do not deal equitably with their suppliers, campaigners urge.
Anti-poverty campaign group ActionAid has warned the new adjudicator “will be toothless unless it is given the power to levy fines on supermarkets that treat suppliers unfairly”.
The House of Commons business committee recommended the groceries code adjudicator should have the ability to impose financial penalties, but fines have been left out of the bill.
Now ActionAid is calling on government to amend it. Melanie Ward, ActionAid’s head of advocacy said: “Having got the groceries code adjudicator bill this far, it is time for the government to stand up to the power of supermarkets. [Business minister] Vince Cable must give the supermarket watchdog the teeth to do its job effectively - the power to levy fines from day one.
“Only with the ability to hit big supermarkets where it hurts – their profit margins – will the watchdog be able to protect vulnerable farmers and producers around the world from being treated unfairly.”
