21 Aug 2018
Groceries Code extended to retailers Ocado and B&M
The NFU welcomed the news but said it was ’a missed opportunity to include other retailers under this remit’.
Alex Black
Retailers Ocado and B&M were now covered by the Groceries Supply Code of Practice(GSCoP), as their annual groceries turnover now exceeds £1bn.
The code sets out how retailers should treat their suppliers and aims to ensure they do not abuse commercial power, such as changing terms of supply retrospectively.
Compliance with the Code was managed by the independent Groceries Code Adjudicator.
Level playing field
Peter Hill, head of remedies enforcement at the Competition and Markets Authority (CMA), said: “These rules mean that suppliers are protected from unfair business practices, and retailers can trade with confidence on a level playing field.
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“Businesses supplying Ocado and B&M will now also benefit from this protection.”
Other retailers subject to the code are Asda, the Co-op, Marks & Spencer, Morrisons, J Sainsbury’s,Tesco, Waitrose, Aldi, Iceland Foods and Lidl.
NFU acting chief food chain adviser Christine McDowell said the NFU had lobbied hard to extend the GSCoP’s remit and was pleased to see Ocado and B&M now covered.
“Widening the scope of GSCOP does send a clear message that the CMA is serious about ensuring fair and lawful practice.
Missed opportunity
“But we think this is a missed opportunity to include other retailers under this remit.
“GSCOP and the role of the Grocery Code Adjudicator, Christine Tacon, have done a good job in working with retailers to give more protection to businesses from unfair trading practices.
“The recent GCA survey showed that retailers have improved their buying behaviour in recent years but there are still improvements to be made, particularly on areas such as delays in payments.”
She added the NFU also held GSCoP training to ensure members were aware of how the GCA could protect their business if supplying directly to retailers.
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