The National Farmers’ Union (NFU) and the charity ActionAid have joined forces to urge retailers to sign up to the supermarket ombudsman proposed by the Competition Commission.
They have taken out a full page advert in The Times ahead of the deadline for retailers to sign up to the plan this week and will carry the message that an ombudsman is in consumers’ best interests and will not push up the retail price of food.
Submissions to the Competition Commission’s in-depth inquiry into the grocery market revealed that a number of retailers employ practices such as retrospective changes to unit prices, rebates from suppliers without prior agreement, and one-off payments for the opportunity to trade.
NFU deputy president Meurig Raymond said: “Both the Competition Commission and Professor Roger Clarke’s independent research showed an ombudsman would be in the best interests of consumers.
“A strengthened code of practice proactively policed by an ombudsman will give suppliers great confidence to invest and innovate and lead to a better range of quality products for consumers. There is no reason why retailers should not sign up to its creation.”
Clarke dismissed claims by retailers that the cost of an ombudsman would push up prices for consumers in his independent research. “The remedies, if effectively enforced, are likely to lead to lower prices in some cases, like agricultural products,” he said.
ActionAid campaigner Jenny Ricks said: “The abuse of market power by retailers affects producers throughout the world, but consumers will be the ultimate losers as the choice of products available to them is reduced. If retailers do not sign up to the ombudsman then government must step in and deliver it through legislation.”
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