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Business

Firms call for supermarket ombudsman

By: KentOnline reporter multimediadesk@thekmgroup.co.uk

Published: 13:27, 13 May 2010

Updated: 16:24, 11 November 2019

Sarah Whibley, a food sector expert with Vertex Law

The new coalition government has been urged to appoint a supermarket ombudsman to ensure a fair deal for suppliers.

Sarah Whibley, a food sector expert with Vertex Law, based at Kings Hill, West Malling, says the Conservatives and Liberal Democrats should live up to their pre-election pledges to appoint a watchdog to
police the supply chain.

Both parties said in their manifestoes that a powerful regulator was needed to enforce the Groceries Supply Code of Practice (GSCOP) introduced by the previous government. It was designed to curb abuses by supermarkets and applies to Asda, the Co-op, Marks&Spencer, Morrisons, Sainsbury's, Tesco, Waitrose, Aldi, Iceland and Lidl.

Ms Whibley said there had been some retailer resistance to the code and an ombudsman, but both were needed. The code's effectiveness was limited by the absence of an effective body to enforce the code, arbitrate on disputes and investigate
complaints.

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"The intention is to ensure a balance between the fair treatment of suppliers and ensuring supermarkets are not prevented from securing good deals, which they can pass on to consumers," she said.

A consultation period ended on April 30 and Ms Whibley says the way is now clear for the new Government to ensure the interests of small suppliers are protected. "I would hope they act swiftly and decisively," she said, adding that it was important for suppliers to check whether their terms and conditions are GSCOP-compliant. The code places several obligations on supermarkets, from a ban on retrospective changes to supply terms, to prompt payment.

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