News and Press
Groceries Code Adjudicator

Last week the Government published its response to the consultation arising from the final report of the Competition Commission's (CC) investigation into competition on the UK grocery market. In its report, the CC proposed that a Groceries Code Adjudicator (GCA) be created to deal with disputes under the Grocery Supply Code of Practice (the code). The code is designed to address the adverse impact on competition arising from the ability of supermarket operators to impose certain conditions on their suppliers.

The Department for Business (BIS) has confirmed that new legislation will be prepared to set up the GCA. The GCA itself will be part of the Office of Fair Trading.

Under the code, the GCA will have the power to deal with complaints from primary suppliers about the way in which supermarkets interact with them. Of particular interest is that suppliers will be entitled to complain anonymously. Nicola Kingaby, associate specialising in competition law says, "It is not surprising that the new provisions allow for anonymous complaints. In its final report, the CC made clear that in the past, suppliers have been slow to complain on the basis that they do not wish to damage their relationship with the supermarkets".

The GCA has the power to prevent unfair practices continuing and to ensure a fair deal for producers and safeguarding the consumer interest, says Consumer Minister, Edward Davey. The BIS intends to publish a draft bill later this year and to bring forward the bill in the second session of parliament.