Latest news with #GroceriesSupplyCodeofPractice
Leader Live
5 hours ago
- Business
- Leader Live
Grocery watchdog investigates Amazon over late payment to suppliers
The Groceries Code Adjudicator (GCA) said it is looking at whether the US-based online retail giant breached rules over payments. The regulator said this will particularly look at delays in paying its suppliers, deductions in commercial negotiations with suppliers and how it manages supplier concerns over these deductions. It comes almost a year after the GCA told Amazon it must take 'swift and comprehensive action' to improve its compliance with industry rules designed to protect suppliers. The GCA oversees Britain's 14 largest grocery retailers – including Tesco, Sainsbury's and Marks & Spencer – to make sure they treat suppliers fairly. It restricts firms from making changes to supply contracts at short notice and also requires retailers to give an appropriate period of notice if they no longer want to use a supplier, and provide reasons for ending the contract. Rules also prohibit late delays in payments from retailers to their suppliers. Adjudicator Mark White 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. 'I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources.' He called on suppliers and to provide evidence about their experiences dealing with Amazon. The GCA added that its has received information about 'other issues at Amazon', but provided no further detail about this. An Amazon spokesman said: 'Amazon takes the Groceries Supply Code of Practice 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 with this particular section of the code. 'We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing falling year-on-year. 'We will continue to listen and work with our grocery suppliers as we roll out further changes.'
Powys County Times
6 hours ago
- Business
- Powys County Times
Grocery watchdog investigates Amazon over late payment to suppliers
The UK grocery watchdog has launched an investigation into Amazon's treatment of suppliers. The Groceries Code Adjudicator (GCA) said it is looking at whether the US-based online retail giant breached rules over payments. The regulator said this will particularly look at delays in paying its suppliers, deductions in commercial negotiations with suppliers and how it manages supplier concerns over these deductions. It comes almost a year after the GCA told Amazon it must take 'swift and comprehensive action' to improve its compliance with industry rules designed to protect suppliers. The GCA oversees Britain's 14 largest grocery retailers – including Tesco, Sainsbury's and Marks & Spencer – to make sure they treat suppliers fairly. It restricts firms from making changes to supply contracts at short notice and also requires retailers to give an appropriate period of notice if they no longer want to use a supplier, and provide reasons for ending the contract. Rules also prohibit late delays in payments from retailers to their suppliers. Adjudicator Mark White 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. 'I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources.' He called on suppliers and to provide evidence about their experiences dealing with Amazon. The GCA added that its has received information about 'other issues at Amazon', but provided no further detail about this. An Amazon spokesman said: 'Amazon takes the Groceries Supply Code of Practice 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 with this particular section of the code. 'We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing falling year-on-year. 'We will continue to listen and work with our grocery suppliers as we roll out further changes.'
The Sun
7 hours ago
- Business
- The Sun
UK grocery watchdog probes Amazon over alleged supplier payment delays
LONDON: Britain's grocery regulator on Friday launched an investigation into Amazon, probing whether the U.S. retail giant breached rules on timely supplier payments over a three-year period. The Groceries Code Adjudicator (GCA) said it suspected Amazon of violating paragraph 5 of the Groceries Supply Code of Practice, which mandates prompt payment to suppliers. 'The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,' adjudicator Mark White said in a statement. Amazon did not immediately respond to a request for comment. White said he launched the investigation, which will cover the period between Amazon's designation in March 2022 and June 2025, based on evidence received from multiple unnamed sources. The GCA said it would examine the scale and impact of any delays, focusing on Amazon's payment systems, how it handles supplier disputes over deductions, and whether it uses deduction settlements unfairly in commercial negotiations. Last year, the GCA threatened Amazon with a formal investigation if it did not improve its compliance with the Groceries Supply Code of Practice. The code aims to ensure Britain's 14 largest grocery retailers, including market leader Tesco, Sainsbury's , and Marks & Spencer, treat suppliers fairly. The regulator had found in its 2024 annual survey that less than half of respondents directly supplying Amazon believed the U.S. giant 'consistently' or 'mostly' complied with the code. At the time, Amazon said it had made several improvements for grocery suppliers since last year's results, with clearer explanations for cost price increase decisions, minimum periods for de-listing, and the launch of a major upgrade for handling invoice disputes. The GCA can impose financial penalties of up to 1% of a large retailer's UK turnover.
The Sun
7 hours ago
- Business
- The Sun
UK grocery regulator probes Amazon over supplier payment delays
LONDON: Britain's grocery regulator on Friday launched an investigation into Amazon, probing whether the U.S. retail giant breached rules on timely supplier payments over a three-year period. The Groceries Code Adjudicator (GCA) said it suspected Amazon of violating paragraph 5 of the Groceries Supply Code of Practice, which mandates prompt payment to suppliers. 'The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,' adjudicator Mark White said in a statement. Amazon did not immediately respond to a request for comment. White said he launched the investigation, which will cover the period between Amazon's designation in March 2022 and June 2025, based on evidence received from multiple unnamed sources. The GCA said it would examine the scale and impact of any delays, focusing on Amazon's payment systems, how it handles supplier disputes over deductions, and whether it uses deduction settlements unfairly in commercial negotiations. Last year, the GCA threatened Amazon with a formal investigation if it did not improve its compliance with the Groceries Supply Code of Practice. The code aims to ensure Britain's 14 largest grocery retailers, including market leader Tesco, Sainsbury's , and Marks & Spencer, treat suppliers fairly. The regulator had found in its 2024 annual survey that less than half of respondents directly supplying Amazon believed the U.S. giant 'consistently' or 'mostly' complied with the code. At the time, Amazon said it had made several improvements for grocery suppliers since last year's results, with clearer explanations for cost price increase decisions, minimum periods for de-listing, and the launch of a major upgrade for handling invoice disputes. The GCA can impose financial penalties of up to 1% of a large retailer's UK turnover.
Glasgow Times
7 hours ago
- Business
- Glasgow Times
Grocery watchdog investigates Amazon over late payment to suppliers
The Groceries Code Adjudicator (GCA) said it is looking at whether the US-based online retail giant breached rules over payments. The regulator said this will particularly look at delays in paying its suppliers, deductions in commercial negotiations with suppliers and how it manages supplier concerns over these deductions. It comes almost a year after the GCA told Amazon it must take 'swift and comprehensive action' to improve its compliance with industry rules designed to protect suppliers. The GCA oversees Britain's 14 largest grocery retailers – including Tesco, Sainsbury's and Marks & Spencer – to make sure they treat suppliers fairly. It restricts firms from making changes to supply contracts at short notice and also requires retailers to give an appropriate period of notice if they no longer want to use a supplier, and provide reasons for ending the contract. Rules also prohibit late delays in payments from retailers to their suppliers. Adjudicator Mark White 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. 'I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources.' He called on suppliers and to provide evidence about their experiences dealing with Amazon. The GCA added that its has received information about 'other issues at Amazon', but provided no further detail about this. An Amazon spokesman said: 'Amazon takes the Groceries Supply Code of Practice 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 with this particular section of the code. 'We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing falling year-on-year. 'We will continue to listen and work with our grocery suppliers as we roll out further changes.'
