New body to
referee between suppliers and retailers A new independent body to
adjudicate between suppliers and retailers and protect against
unfair practices moved a step closer today. Consumer Minister
Edward Davey published the draft Groceries Code Adjudicator Bill
and invited pre-legislative scrutiny of the Bill by Parliament.
Ministers are determined that suppliers should be protected
against retailers passing on excessive risks or unexpected costs.
The Bill seeks to establish an adjudicator to monitor and enforce
the Groceries Supply Code of Practice who will be able to:
act as arbitrator in disputes between retailers and their direct
suppliersstart investigations about potential breaches of the Code
based on complaints from suppliers and/or information in the
public domain
Consumer Minister Edward Davey said
“Preventing unfair practices and increasing certainty for
suppliers will safeguard consumer interests, as large retailers
won’t be able to take advantage of their position of power, as set
out in the Code.
“This is an important step towards establishing the Groceries
Code Adjudicator, which the Government is strongly committed to.”
Agriculture and Food Jim Paice said:
“We want to see a food industry where farmers and food producers
are getting a fair deal, and consumers can buy the high-quality,
British food they want at a price they can afford.
“This Bill will give teeth to the Code of Practice, will mean
that bad practice can be stamped out and that suppliers can raise
legitimate disputes confidentially, and without the fear that
they’ll be penalised for speaking up through lost business.”
In August 2010, the Government published its response to the
consultation to take forward the establishment of a body to
monitor and enforce the Groceries Supply Code of Practice (GSCOP).
This draft Bill is the result of this consultation and the
Competition Commission’s Market Investigation on the Supply of
Groceries in the UK.
Pre-legislative scrutiny will start the parliamentary process for
enacting the Groceries Code Adjudicator.
As part of the Government’s commitment to increase transparency
and accountability of Parliament to the public, the draft
Groceries Code Adjudicator Bill is written in a way that helps
wider understanding.
Without compromising on its legal clarity and force, the
Government hopes that this is one of the easiest to understand
Bills ever published. With the use of simple language, we hope
that those affected by the legislation – such as Parliamentarians,
interested groups and the public – will be able to engage more
actively in the legislative process and understand the impacts of
the Bill.
Notes to editors:
1. The draft bill and accompanying documents can be viewed at
http://www.bis.gov.uk/policies/business-law/competition-matters/market-studies/cc-market-investigation-on-the-uk-supply-of-groceries
2. The Groceries Code Adjudicator (GCA) will be responsible for
monitoring and enforcing the Groceries Supply Code of Practice
(GSCOP).
3. The GSCOP has been in place since 4 February 2010 and is
currently monitored by the Office of Fair Trading (OFT).
4. The Government response to the consultation on the Competition
Commission’s recommendation to establish an adjudicator was
published on 3 August 2010, and can be found here: http: //www.bis.gov.uk/policies/business-law/competition-matters/market-studies/cc-market-investigation-on-the-uk-supply-of-groceries.
5. Funding for the GCA will come from designated supermarkets via
a levy. Those supermarkets with an annual UK turnover of £1Billion
are designated.
6. The recommendation to establish a body to enforce the Grocer
Suppliers Code of Practice came from the Competition Commission
which investigated the groceries market. Its detail reports can be
found at: http://www.competition-commission.org.uk/rep_pub/reports/2008/538grocery.htm
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Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joshua Coe
Phone: 020 7215 5943
Joshua.Coe@bis.gsi.gov.uk