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The Competition Commission's recent announcement of the provisional findings in its grocery inquiry may have risked creating 'inquiry fatigue', but it did point to possible changes in the code of practice regulating retailer-supplier relationships.
The majority of the report's action recommendations centred around land issues. However, the Commission said it would look at "tightening various provisions of the Supermarket Code of Practice" before its final report due in early May next year.
The Commission said it was "concerned about the ability of grocery retailers to transfer excessive risk and costs to suppliers through various purchasing practices, such as retrospective changes to supply agreements". It added: "The CC considers that these practices could damage investment and innovation in the supply chain to ultimate detriment of consumers."
British Retail Consortium director general Kevin Hawkins told MB&R that retrospective alterations in supply contracts are not an everyday occurence: "When they happen, it's usually for good reason."
According to the provisional findings, there were "aspects of the way retailers deal with their suppliers, which, if left unchecked, could harm consumers".
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