UK Government Announces Creation Of New Supermarket Ombudsman
The British government has announced the creation of a new supermarket ombudsman that will be established to protect the interests of suppliers and farmers from the market power of the UK’s largest grocery retailers.
The Competition Commission has established a new set of guidelines which are designed to govern the relationship between retailers and their suppliers.
The guidelines known as the groceries supply code of practice will be effective from February 4th after which a period of consultation will come into effect over how the regulation should be enforced, and what powers should be granted to the new ombudsman.
The ombudsman will cost £3.7 million to create and have an annual operating budget of £1.3 million, the Department for Business, Innovation and Skills said.
The establishment of a new regulator follows a two year Competition Commission investigation into the practices of UK supermarket chains, which found that the larger retailers were passing on unexpected cost increases, and excessive risk to independent suppliers.
Commenting on the plans, Consumer Minister Kevin Brennan said: “The power that large grocery retailers remain able to wield over their suppliers can still create pressures on small producers.”
“However the government is mindful of placing unnecessary costs on to business especially in a period of economic difficulty, which is why we plan to issue a consultation on how best to take matters forward.”
Please Note - All Prices Quoted Are Correct at Time of Posting
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