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Local Shops Back Grocery Ombudsman Bill


17 Dec 2009
 

ACS (the Association of Convenience Stores) has welcomed the introduction of the Grocery Market Ombudsman Bill. This Private Members Bill introduced by Labour MP for Yns Mon, Albert Owen will introduce a regulator to arbitrate disputes and proactively investigate supermarket compliance with their code of practice.

The Private Members Legislation would implement the recommendations of the Competition Commission formally made in May 2008, and subject to significant delay and obstruction since that date. In August of 2009 the Competition Commission formally recommended that Ministers create an Ombudsman by way of legislation, having falied to secure a voluntary agreement from the supermarkets to create one. Ministers have yet to respond.

If brought in, the Ombudsman would have no scope to intervene in negotiations between retailers and suppliers, except so as to ensure that none of the banned practices included in the code of practice are taking place.

ACS Chief Executive James Lowman said: “Local shops will benefit from the more competitive marketplace that can only be delivered by a Grocery Ombudsman with proactive powers to ensure fair dealing. This would not limit the supermarkets’ ability to drive keen bargains with their suppliers but would benefit consumers by promoting choice and innovation in the marketplace. “

Mr Owen said of the Bill: “This legislation provides the perfect opportunity to introduce the Ombudsman and I look forward to working with the Government and opposition parties as the Bill progresses through Parliament.”