Supermarket enforcer gets go-ahead

Consumer minister Kevin Brennan has today (13 January) announced that he has accepted the Competition Commission’s recommendation for a body to enforce the Groceries Supply Code of Practice (GSCOP).

The Government agrees with the Competition Commission’s recommendation that the new Groceries Supply Code of Practice needs to be enforced independently to prevent retailers being able to pass excessive risks and unexpected costs on to their suppliers, and that any enforcement body should have the important power of hearing anonymous complaints.

The Code of Practice comes into force on 4 February 2010 and this will be quickly followed by a consultation, beginning in February, on how best to enforce the GSCOP, including who that body might be and the powers it could have.

The new, tougher code and proper enforcement will mean that the grocery supply market works in the long term best interest of consumers.

Environment Secretary Hilary Benn said:

“The new ombudsman will help strike the right balance between farmers and food producers getting a fair deal, and supermarkets enabling consumers to get the high quality British food that they want, at an affordable price.”

“Helping our farmers produce as much as they can, while using fewer resources is at the heart of the Government’s food strategy, which was published last week.”

“The agri-food sector is Britain’s biggest manufacturing sector, worth £80.5 bn to the economy and employing 3.6m people, so it is vital that the market operates fairly. The new code and ombudsman, the result of two intensive investigations by the Competition Commission since 2000, will ensure the market works effectively and in consumers best interest.”

15 January 2010