Amazon investigated over breach of code on payments to suppliers

Times

20-06-2025

Amazon is being investigated by a government regulator over claims it mistreated suppliers by delaying payments to them.
The Groceries Code Adjudicator said it had launched a 'targeted investigation'' because it had 'reasonable grounds to suspect'' the technology and retail giant had breached rules governing fair payment of suppliers. It said it had received 'evidence from a range of sources'.
The regulator, which has the power to levy a fine up to 1 per cent of a retailer's UK turnover, said it had also received information about other alleged issues at Amazon. These are understood to include how suppliers are 'de-listed', or dropped, and payments made to Amazon by suppliers.
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The adjudicator regulates the relationship between the UK's largest grocery retailers and their direct suppliers. The Amazon investigation is only the adjudicator's third since the office was established in 2013.
Its rules governing payments say that bills must be settled according to the terms of the agreement between supplier and grocer 'and, in any case, within a reasonable time after' the invoice date.
The adjudicator said the Amazon investigation will focus on the 'nature, extent and impact of practices which may have resulted in delays in payments including Amazon's receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers'.
Mark White, the adjudicator, said: 'Delays in payment can significantly harm suppliers. The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate.'
The regulator has carried out two investigations, the first into Tesco in 2015 and the second into the Co-op in 2018. It has not used its powers to fine, although these only came into force for breaches after April 2015, so could not be used against Tesco.
An Amazon spokeswoman said the company took the rules 'incredibly seriously and we will co-operate fully with the adjudicator as he carries out his investigation'.
'While we are disappointed with this decision, we welcome the opportunity to further demonstrate our ongoing compliance,' she said.
The adjudicator governs rules which apply to retailers with UK annual groceries turnover exceeding £1 billion. Its description of groceries includes pet food, toiletries and cleaning and other household products as well as food and drink.