ACS

Local shops have welcomed the announcement that Government will support for the Competition Commission's recommendation to introduce a Grocery Ombudsman. The new regulator will be charged with investigating abusive practices and arbitrating disputes between supermarkets and suppliers.

ACS Chief Executive James Lowman called the decision a “victory for common sense" and stressed that ACS will seek to help Government to act quickly to put in place this vitally important safeguard of consumer interests.

Following the introduction of a new code of practice on February 4th 2010 the Department for Business, Innovation and Skills be consulting on the powers and structure of the new Ombudsman. Last week the Conservative Party also revealed their support for the introduction of a Grocery Ombudsman.

James Lowman, ACS Chief Executive, said: “Political support for action has been hard fought, now there is a consensus action is needed to make this happen quickly and to end the negative effects of harmful buying practices. In February the new Grocery code of practice set up these problems will be in place and a regulator is needed to make sure it works.

“When we met with Kevin Brennan, we made it clear that the creation of a regulator as defined by the Competition Commission is the proportionate response to protect consumer interests and will not impede the ability for retailers to continue to compete. We also urged the Minister to stick closely to the parameters of the scheme developed by the Competition Commission, thereby ensuring that the regulator is efficient, independent and proactive.

ACS has campaigned for action to address the consumer harm created by unfair competition in the grocery market for a number of years and has been pressing for the implementation of an Ombudsman since the recommendation of the Competition Commission in May 2008.
 

Contacts:

Shane Brennan Public Affairs Director
01252 533009/ 07921 372978
Chris Noice Communications Assistant
01252 533013

Notes to Editors:

1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,500 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities.

2. ACS led the campaign for a Competition Commission inquiry into the grocery market with a request for a market investigation initially submitted to the OFT in November 2004. After this was rejected ACS challenged the OFT in the Competition Appeals Tribunal. The OFT withdrew its decision prior to the CAT hearing in October 2005, and after re-considering its decision referred the grocery market to the Competition Commission in May 2006. ACS gave evidence to the Commission in three formal hearings and a body of written evidence that is available from the Commission or from ACS on request.