ACS

ACS and the Federation of Wholesale Distributors (FWD) have warned that the new code for supermarkets proposed by the Competition Commission will be ‘toothless’ if it is not accompanied by an effective and well resourced Ombudsman.

ACS Chief Executive James Lowman said: “Smaller retailers and consumers continue to suffer the consequences of abuse of suppliers by the Big 4 grocery retailers. Supplier abuse leads to increased prices, poorer service and less choice for other competitors and therefore an effective code of practice to prevent abuses is overdue. We welcome the new code and have set out constructive suggestions for it to be strengthened.

“However, our support is reliant on the successful introduction of a dedicated retail ombudsman to monitor, interpret and enforce the code’s provisions. As it stands it is wholly unclear how and when this Ombudsman will be put in place. Now is the time for decisive action to implement the recommendations of the Competition Commission.”

Deputy Director General of FWD, James Bielby said: “After a two year Inquiry and reams of evidence the Commission recommended action to protect consumers, but that was almost a year ago and we have still not seen any concrete action to do anything about it. The continuing prevarication and delay is undermining competition in the market. It is now time for Ministers to step in where the Commission is failing to act. “

ACS have made a submission today to the Competition Commission as part of its consultation on the draft order to bring in a Grocery Supply Code of Practice, supported by the Federation of Wholesale Distributors (FWD) and the Scottish Grocers’ Federation (SGF).