Competition minister Jo Swinson today gave MPs, industry bodies, action groups and pretty much everyone you care to mention (apart from the supermarkets, obviously) what they demanded - a groceries code adjudicator with the power to fine offenders. A.k.a. teeth.
The usual suspects lined up to brand the move good or bad. NFU head of government Affairs Nick von Westenholz, welcomed the “Great news,” via twitter, saying “Finally looks like we’ll have a body up to the job”. The BRC called the move a “a major let-down”, saying “The power to impose fines is unnecessary and heavy-handed and should be kept in reserve. What kind of message does this send about the Government’s attitude to Britain as a place to do business?”
Whichever side you come down on, the legislation is now close to being rubber stamped, and an appointment is expected soon. Which begs the question, what will the effect of an up and running GCA be on the industry? After so long in gestation (The OFT kick-started the process in 1999), will the threat of naming, shaming and a big fine by an adjudicator finally prove effective in ensuring that supermarkets do not abuse their position when dealing with suppliers? And if the code is still flouted, will suppliers feel any more comfortable coming forward to raise a complaint?
Perhaps we have to wait for the first row to erupt to see what protection the GCA will offers those who complain - and to see just how sharp its teeth really are.
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