The Groceries Code Adjudicator has said he is weighing up the cost and resources required for an investigation into online giant Amazon, compared with more informal action to improve the way it deals with suppliers.
Mark White was speaking after the GCA launched its 2025 supplier survey yesterday, including a call for suppliers to come forward with evidence about the behaviour of under-fire Amazon.
The retailer came rock bottom in the 2024 poll, with its perceived code compliance score falling from 59% to 47%. White said he was “monitoring the actions that Amazon is taking” having warned the company that unless it took “swift and comprehensive action” he would launch his first investigation since taking over as Adjudicator in 2020.
Last month, The Grocer revealed Amazon had carried out a major overhaul of its rules of engagement in a bid to ward off GCA action, including relaunching a supplier dashboard dealing with disputes over “shipment variances” and offering concessions to suppliers over proof of delivery.
However, sources claim Amazon is continuing to attract far higher levels of disputes over shipment variances than other retailers.
White told The Grocer he had a duty to consider the benefits and disadvantages of a long, drawn-out investigation into Amazon, which could see the company fined 1% of its UK turnover.
“I have to consider the impact of an investigation, the strategic risks and benefits and that includes comparing the resources required for an investigation against more informal actions to ensure improvements in behaviour.
“There is quite a big difference. An investigation can take a very long time and so suppliers might not see any benefit for a considerable period of time, whereas if the changes are made much more quickly suppliers should see the benefits.”
However, White urged suppliers to come forward in the new survey, which runs until 23 February.
“I’m continuing to monitor the actions that Amazon is taking to ensure that they are effective and a part and parcel of the 2025 survey. I would be really grateful for suppliers to tell me about their experiences and whether Amazon have done enough.”
The Adjudicator’s survey is also expected to show the extent to which the return of inflation is affecting supplier and retailer relations, with the 2024 survey showing a 12% fall in the percentage of suppliers highlighting a large retailer’s response to a CPI request as an issue.
Sources expect the looming introduction of the government’s extended producer responsibility fees to increase tension in the supply chain. Many have predicted battles over who shoulders the cost.
White said: “This is a very fast-paced sector with changes happening all the time. I have no authority to regulate price so for me regardless of the cause of the pressure on retailers or suppliers over prices. What really concerns me is ensuring that those negotiations are conducted in good faith and that the process of determining the outcomes are in accordance with my Seven Golden Rules.”
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