The government will set up a new body to rein in large retailers who ‘abuse their power’, consumer minister Edward Davey has announced.
The government will set up a new body to rein in large retailers who ‘abuse their power’, consumer minister Edward Davey has announced.
The Groceries Code Adjudicator (GCA) will have the authority to intervene when supermarkets are seen to be ‘transferring excessive risks or unexpected costs on to their suppliers’, Davey adds.
He continues, ‘These sorts of pressures are bad for producers and bad for consumers – ultimately they can lead to lower quality goods, less choice and less innovation.’
Under the government plans, complaints against retailers could be submitted anonymously by supermarkets’ primary suppliers, including farmers who do not supply them directly.
Jim Paice, the minister for food and farming, says, ‘The new adjudicator will help to strike the right balance between farmers and food producers getting a fair deal, and supermarkets ensuring their customers can get the high-quality British food they want at a price they can afford.’
But the British Retail Consortium has blasted the move, with director general Stephen Robertson calling the GCA a ‘quango’ and saying responding to complaints will ‘clock up costs’ for retailers.
Robertson adds, ‘Granting complainants anonymity offends against natural justice and would make it very difficult for retailers to respond to cases.’
Since establishing the GCA will require new legislation, a draft bill is expected to be completed later this year.
