Archived press release

Supermarket supply code of practice needs tough enforcement

4 February 2010

A Grocery Supply Code of Practice which comes into force today (Thursday, 4 February 2010) must be properly enforced by an ombudsman to stop the bullying tactics of supermarkets towards suppliers, says Friends of Earth.

The Code of Practice is designed to promote fairer dealing between supermarkets and their suppliers, and prohibit the biggest food retailers from unfair buying practices, such as retrospectively changing terms of trade.

But the green campaigning charity said that without a tough enforcement body to monitor and ensure compliance by the major retailers, the Code of Practice will fail to protect farmers and other suppliers.

The Government begins a 12-week consultation tomorrow (Friday, 5 February 2010) to determine how an ombudsman will operate.

Friends of the Earth's food campaigner Helen Rimmer said:

"The new Code of Practice is a welcome step - it has the potential to stop supermarkets from abusing farmers, suppliers and ultimately consumers.

"But without a tough watchdog to police it, the new Code will fail just like the previous one.

"The Government must urgently establish an independent watchdog that can investigate the supply chain, guarantee farmers' anonymity and impose fines on supermarkets that are breaching the Code.

"Proper enforcement of the Code will ensure a fairer deal for farmers, workers, and shoppers alike - both in the UK and abroad."

Friends of the Earth has led the campaign for a supermarkets ombudsman since 2004. Last month the Government formally backed the creation of the new role in line with the recommendations of the Competition Commission.

Notes to editor

1. The Competition Commission's final report from a two-year inquiry into the grocery market was published in April 2008, concluding that supermarkets' abuse of buyer power has an adverse effect on competition and if left unaddressed would be against consumer interests. It recommended a strengthened Groceries Supply Code of Practice (GSCOP) and an independent Ombudsman to enforce it.
http://www.competition-commission.org.uk/rep_pub/reports/2008/538grocery.htm

2. The Competition Commission published the GSCOP on 4 August, and retailers have been given until 4 February to comply. At the same time the Competition Commission also announced it had been unable to reach a voluntary agreement with retailers to set up an ombudsman and made a recommendation to Government to establish it by the means necessary. http://www.competition- commission.org.uk/press_rel/2009/aug/pdf/36-09.pdf

3. The Department for Business, Innovation and Skills is expected to launch a consultation on enforcement of the GSCOP on 5 February after the Code has come into force.

4. Friends of the Earth is calling for a new law to set up an independent Ombudsman that can proactively investigate supermarkets' buying practices, protects suppliers' anonymity, acts on complaints from primary producers and third parties, and can impose fines on supermarkets found to be breaking the Code of Practice.

5. Friends of the Earth's Food Chain Campaign is calling on the Government to get behind planet-friendly farming www.fixthefoodchain.com

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Published by Friends of the Earth Trust