Q&A on the Grocery Code Adjudicator
Why do supermarkets need a watchdog?
The watchdog, called the Grocery Code Adjudicator, will ensure that supermarkets do not break the Grocery Supply Code Of Practice (GSCOP). This code bans a number of unfair practices, such as:
- Supermarkets changing the price paid to the supplier of goods, even after they have been delivered and sold in store
- Making suppliers pay for goods stolen from stores
- Making suppliers pay for refurbishment of supermarkets.
Some shoppers would be quite surprised that some of these practices existed, let alone needed banning. The impact on the suppliers of some practices can be catastrophic, particularly on smaller businesses and producer organisations. Most people would struggle to cope if, on opening their pay packet, they discovered a note from their employer saying they had decided to pay them less this month.
Other practices simply add to the costs of doing business with supermarkets, which ultimately end up being borne by the consumer either way. Further details about the code can be found here: http://www.competition-commission.org.uk/press_rel/2009/aug/pdf/36-09.pdf
I’ve written to my MP, what more can I do to make this happen?
Why not meet your MP personally to tell him or her why this issue is important to you? There is nothing like the personal touch for getting the message across. Even ‘tweeting’ them or sending a message on Facebook will make a difference. In turn, encouraging your MP to do more than write to the minister – they could request a personal meeting with Vince Cable, ask a question in Parliament or even get a debate on the issue. They represent you, so make sure are they represent your views.
Isn’t the Grocery Supply Code of Practice (GSCOP) enough?
No, we believe it’s like a referee with a whistle but no red card. The Grocery Supply Code of Practice has been in force since 2001 and was reinforced in 2009 by the independent Competition Commission, under its power to regulate markets. After hearing evidence from a wide range of interested parties, the House of Commons’ Select Committee on Business, Innovation and Skills agreed with the Competition Commission’s finding that an Adjudicator was needed to enforce the Code. The Chair of the committee stated:
‘Our committee has considered the Government's draft legislation for setting up the Adjudicator, and we can see the need for an Adjudicator to be established. We heard evidence of some improvement in Code compliance, but there is evidence too of continuing difficulties, and of reluctance by suppliers to invoke their rights under the Code. The Adjudicator will provide protection for suppliers in the form of a cloak of anonymity and will have its own powers to investigate alleged bad practice. We agree that those powers are needed so that suppliers will feel more secure in coming forward.’
How will an adjudicator help farmers in developing countries?
British shoppers spent more than £1 billion on Fairtrade goods last year because they want to be sure that the goods they are buying are made to the highest ethical standard. They are less and less prepared to disregard the potential negative impacts of their weekly shop on the people who produce it. A strong Adjudicator will help ensure more goods we consume are produced to a higher ethical standard.
When a supplier gets squeezed too hard, the cost of this can only be passed on to the workers and suppliers, in the form of less favourable terms and conditions. At the bottom of this supply chain are farmers and producers across the world.
