The Competition Commission has released its report on its inquiry into UK groceries, confirming that it wants an Ombudsman established to oversee disputes, possibly appointed by retailers.
In addition to measures restricting planning decisions on larger grocery stores, and land agreements, the report strengthened the Groceries Supply Code of Practice and recommended the establishment of an independent ombudsman to enforce the code. However, it was not clear who would appoint the Ombudsman and how it would be done.
A commission spokesperson told MB&R: "Our first aim will be to get voluntary agreement from the retailers. If this doesn't happen, it is likely that the OFT would be responsible for appointing the Ombudsman."
The adjustments to the Supply Code of Practice include incorporating all retailers with turnover in excess of £1bn. An "overarching fair dealing provision" has been introduced, together with the prohibition of restrospective adjustments to terms of supply.
Retailers will also be "required to provide notice of and reasons for de-listing suppliers or significantly reducing suppliers' business". All arrangements will have to be recorded in writing.
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