Growers, suppliers and supermarkets have moved a step closer to having supply disputes investigated by a new Groceries Code Adjudicator (GCA).
Government has today published the response to its consultation to establish a body to monitor and enforce the Groceries Supply Code of Practice (GSCOP). The Department for Business (BiS) will work on legislation in order to set up the GCA, which will be housed within the Office of Fair Trading (OFT).
The GCA will have the power to receive complaints about the way supermarkets interact with their primary suppliers from anyone in the supply chain in the UK or overseas, and deal with them anonymously. This includes growers who may not supply the large supermarkets directly. Trade associations and non-governmental organizations will not be able to lodge complaints directly under the government’s 90-page response document published today.
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. 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."
These proposals to establish the GCA as set out in consultation response will require primary legislation. BiS will be seeking Parliamentary Business and Legislation Committee approval to publish a draft bill later this year with the intention of bringing forward a bill in the second session.
More analysis and comment to follow.
