Member News
An adjudicator to investigate disputes between farmers, suppliers and supermarkets is to be established, the government has announced.
The Groceries Code Adjudicator (GCA) will sit within the Office of Fair Trading, but will be independent.
It will resolve disputes about the way supermarkets interact with their suppliers and deal with them anonymously.
And the GCA will not become involved in consumers' complaints.
The move follows a recommendation from the Competition Commission in 2008.
The watchdog has been eagerly awaited by farmers and small suppliers who have long been calling for a supermarket watchdog or ombudsman.
The Department of Business said the GCA's job would be to police the Groceries Supply Code of Practice (GSCOP) which has been in place since February this year. It has not yet been decided who will take the position.
Consumer minister Ed Davey said: "We want to make sure that large retailers can’t abuse their power by transferring excessive risks or unexpected costs onto their suppliers.
"These sorts of pressures are bad for producers and bad for consumers – ultimately they can lead to lower quality goods, less choice and less innovation."
He said the GCA will be able to "step in to prevent unfair practices continuing – ensuring a fair deal for producers and safeguarding the consumer interest".
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