Wragge Lawrence Graham & Co

UK 200 2013 position: 25

More carrot, less stick: the Groceries Code Adjudicator issues guidance on investigation and enforcement powers

The Groceries Code Adjudicator has issued guidance on how the adjudicator will carry out its investigation and enforcement functions under the Groceries Code Adjudicator Act 2013 in order to enforce GSCOP (the groceries supply chain code of practice between suppliers and the UK’s 10 largest supermarkets).

This follows the open letter produced by the adjudicator in response to reports Tesco was demanding payment from suppliers for optimal shelf positioning.

Although the guidance does not cover the types of informal action the adjudicator may take, mention of informal action with suppliers is made six times in the guidance. The adjudicator is indicating that she will, where possible, attempt to stem prevailing practices early through informal action rather than using formal enforcement powers…

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