Archived press release

Supermarket watchdog needed now

4 August 2009

Responding to the Competition Commission's referral to Government of the decision on a supermarket Ombudsman (published today, 4 August 2009), Friends of the Earth's food campaigner Helen Rimmer said:

"Despite a major investigation which found the supermarkets guilty of abusing their buyer power, the Competition Commission has failed to get agreement for a watchdog which would stamp out the worst practices of the supermarkets and get a better deal for consumers.

"At a time when many farmers and small businesses are struggling to survive, the big supermarkets continue to post record profits.

"The Government must stand up to the big retailers and set up an independent watchdog to put an end to the supermarkets' bullying behaviour and secure a fairer deal for shoppers and farmers alike."

Notes to editors

1. Following a two year investigation, the Competition Commission concluded last year that the transferral of 'excessive risks and unexpected costs' to suppliers hampers their ability to invest and innovate, limiting choice and harming consumers in the long term (Groceries Market Inquiry Final report, April 2008, Competition Commission).

2. A study by the economist Professor Roger Clarke, published in January 2009, concluded that 'the costs [of an Ombudsman] are likely to be minor compared to the benefits that arise', including more choice, better quality products and lower prices in some cases, and would amount to just 0.005% of each supermarkets' turnover.

3. Friends of the Earth says that as the supermarkets continue to apply downward pressure on prices and adopt unfair trading practices, many farmers in the UK and overseas are being pushed to the brink of viability. Rather than delivering a good deal for consumers, the supermarkets' aggressive supply chain practices serve only to increase their own profit margins, with Tesco for example posting a record £3 billion in profit in 2009.

4. Friends of the Earth is calling for an independent proactive Ombudsman to ensure a fairer food supply chain for consumers and suppliers.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust