Award winning supplier Greyfriars has accused Tesco before the Office of Fair Trading of violating the supermarket code of conduct.
John Smith, md of the Re:fresh award winning company, alleged Tesco was using the practice of over-riders as “listing fees” as a condition for selling suppliers products, something the code prohibits.
In a letter to the OFT, reported in the FT this week, he said: “In the case of over-riders you have an excellent opportunity to right a serious wrong and to demonstrate to supermarkets in general, but Tesco in particular, that they cannot behave with impunity.”
Tesco denied it had breached the code and suggested the complaints were the result of sour grapes after Greyfriars recently lost its contract with the retailer.
The accusation has come the week before the OFT is expected to release a review of the code, although a spokesman said the allegations came too late to be considered in the report.
It said it would be dealing with the incident separately.
